Item 16. FORM 10-K SUMMARY.

None.

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Schedule II—Condensed Financial Information of Registrant

Anthem, Inc. (Parent Company Only)

Balance Sheets

(In millions, except share data)	December 31, 2018				December 31, 2017
Assets
Current assets:
Cash and cash equivalents	$	1,290			$	956
Fixed maturity securities, current (amortized cost of $589 and $342)	573				346
Equity securities, current	86				1,458
Other invested assets, current	10				5
Other receivables	131				61
Income taxes receivable	—				75
Net due from subsidiaries	170				2,428
Securities lending collateral	35				15
Other current assets	320				228
Total current assets	2,615				5,572
Long-term investments:
Equity securities	6				6
Other invested assets, long-term	616				644
Property and equipment, net	186				118
Deferred tax assets, net	209				162
Investments in subsidiaries	44,877				40,211
Other noncurrent assets	225				89
Total assets	$	48,734			$	46,802
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	1,429			$	1,232
Security trades pending payable	—				11
Securities lending payable	35				14
Income taxes payable	112				—
Current portion of long-term debt	849				1,275
Other current liabilities	235				219
Total current liabilities	2,660				2,751
Long-term debt, less current portion	17,192				17,357
Other noncurrent liabilities	341				191
Total liabilities	20,193				20,299
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 - 257,395,577 and 256,084,913	3				3
Additional paid-in capital	9,536				8,547
Retained earnings	19,988				18,054
Accumulated other comprehensive loss	(986		)		(101		)
Total shareholders’ equity	28,541				26,503
Total liabilities and shareholders’ equity	$	48,734			$	46,802

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Income

	Years ended December 31
(In millions)	2018				2017				2016
Revenues
Net investment income	$	39			$	64			$	75
Net realized losses on financial instruments	(46		)		(18		)		(195		)
Other-than-temporary impairment losses on investments:
Total other-than-temporary impairment losses on investments	(15		)		(7		)		(65		)
Portion of other-than-temporary impairment losses recognized in other comprehensive (loss) income	—				—				17
Other-than-temporary impairment losses recognized in income	(15		)		(7		)		(48		)
Other revenue	2				—				—
Total (losses) revenues	(20		)		39				(168		)
Expenses
General and administrative expense	86				437				270
Interest expense	723				727				719
Loss on extinguishment of debt	11				283				—
Total expenses	820				1,447				989
Loss before income tax credits and equity in net income of subsidiaries	(840		)		(1,408		)		(1,157		)
Income tax credits	(238		)		(216		)		(439		)
Equity in net income of subsidiaries	4,352				5,035				3,188
Net income	$	3,750			$	3,843			$	2,470

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Comprehensive Income

	Years ended December 31
(in millions)	2018				2017				2016
Net income	$	3,750			$	3,843			$	2,470
Other comprehensive income, net of tax:
Change in net unrealized gains/losses on investments	(418		)		173				118
Change in non-credit component of other-than-temporary impairment losses on investments	(2		)		4				5
Change in net unrealized gains/losses on cash flow hedges	37				(65		)		(87		)
Change in net periodic pension and postretirement costs	(90		)		51				(13		)
Foreign currency translation adjustments	(1		)		3				2
Other comprehensive (loss) income	(474		)		166				25
Total comprehensive income	$	3,276			$	4,009			$	2,495

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Cash Flows

	Years ended December 31
(In millions)	2018				2017				2016
Operating activities
Net income	$	3,750			$	3,843			$	2,470
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries	(744		)		(2,437		)		(502		)
Net realized losses on financial instruments	46				18				195
Other-than-temporary impairment losses recognized in income	15				7				48
Loss on extinguishment of debt	11				283				—
Loss on disposal of assets	—				—				2
Deferred income taxes	(43		)		(33		)		(7		)
Amortization, net of accretion	43				25				34
Depreciation expense	70				69				70
Share-based compensation	226				170				165
Excess tax benefits from share-based compensation	—				—				(54		)
Changes in operating assets and liabilities:
Receivables, net	(73		)		(17		)		18
Other invested assets, current	(5		)		(1		)		1
Other assets	(225		)		(102		)		213
Amounts due to/from subsidiaries	2,259				(1,034		)		(1,488		)
Accounts payable and accrued expenses	303				491				44
Other liabilities	154				(61		)		(31		)
Income taxes	187				(6		)		198
Other, net	1				(2		)		5
Net cash provided by operating activities	5,975				1,213				1,381
Investing activities
Purchases of investments	(800		)		(3,814		)		(2,875		)
Proceeds from sales, maturities, calls and redemptions of investments	1,865				2,595				3,310
Changes in collateral and settlement of non-hedging derivatives	—				65				(34		)
Capitalization of subsidiaries	(4,379		)		(124		)		(295		)
Changes in securities lending collateral	(21		)		25				92
Purchases of property and equipment, net of sales	(137		)		(44		)		(99		)
Other, net	4				18				(8		)
Net cash (used in) provided by investing activities	(3,468		)		(1,279		)		91
Financing activities
Net (repayments of) proceeds from commercial paper borrowings	(107		)		175				(53		)
Proceeds from long-term borrowings	835				5,458				—
Repayments of long-term borrowings	(1,684		)		(2,815		)		—
Changes in securities lending payable	21				(25		)		(91		)
Changes in bank overdrafts	(107		)		51				30
Proceeds from sale of put options	1				1				—
Proceeds from issuance of common stock under Equity Units stock purchase contracts	1,250				—				—
Repurchase and retirement of common stock	(1,685		)		(1,998		)		—
Change in collateral and settlements of debt-related derivatives	23				(149		)		(360		)
Cash dividends	(812		)		(737		)		(715		)
Proceeds from issuance of common stock under employee stock plans	173				225				120
Taxes paid through withholding of common stock under employee stock plans	(81		)		(47		)		(67		)
Excess tax benefits from share-based compensation	—				—				54
Net cash (used in) provided by financing activities	(2,173		)		139				(1,082		)
Change in cash and cash equivalents	334				73				390
Cash and cash equivalents at beginning of year	956				883				493
Cash and cash equivalents at end of year	$	1,290			$	956			$	883

See accompanying notes.

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Anthem, Inc.

(Parent Company Only)

Notes to Condensed Financial Statements

December 31, 2018

(In Millions, Except Per Share Data)

1. Basis of Presentation and Significant Accounting Policies

In the parent company only financial statements of Anthem, Inc., or 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.

Certain prior year amounts have been adjusted to conform to the current year rounding convention of reporting financial data in whole millions of dollars, except as otherwise noted.

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 $3,606, $2,268 and $2,689 during 2018, 2017 and 2016, 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 $36, $32 and $31 during 2018, 2017 and 2016, respectively.

Investments in Subsidiaries

Capital contributions to subsidiaries were $4,379, $124 and $295 during 2018, 2017 and 2016, respectively.

Amounts Due to and From Subsidiaries

At December 31, 2018 and 2017, Anthem reported amounts due from subsidiaries of $170 and $2,428, respectively. The amounts due from subsidiaries primarily include amounts for allocated administrative expenses or cash held overnight at the parent level resulting from 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 $580 at December 31, 2018. There were no payments made on these guarantees in 2018.

3. Derivative Financial Instruments

The information regarding derivative financial instruments contained in Note 5, “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.

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4. Long-Term Debt

The information regarding long-term debt contained in Note 12, “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 13, “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 14, “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.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ANTHEM, INC.
By:	/s/ GAIL K. BOUDREAUX
	Gail K. Boudreaux President and Chief Executive Officer

Dated: February 20, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature		Title	Date
/s/ GAIL K. BOUDREAUX		President and Chief Executive Officer, Director (Principal Executive Officer)	February 20, 2019
Gail K. Boudreaux
/s/ JOHN E. GALLINA		Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 20, 2019
John E. Gallina
/s/ RONALD W. PENCZEK		Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)	February 20, 2019
Ronald W. Penczek
/s/ ELIZABETH E. TALLETT		Chair of the Board	February 20, 2019
Elizabeth E. Tallett
/s/ R. KERRY CLARK		Director	February 20, 2019
R. Kerry Clark
/s/ ROBERT L. DIXON, JR.		Director	February 20, 2019
Robert L. Dixon, Jr.
/s/ LEWIS HAY III		Director	February 20, 2019
Lewis Hay III
/s/ JULIE A. HILL		Director	February 20, 2019
Julie A. Hill
/s/ BAHIJA JALLAL		Director	February 20, 2019
Bahija Jallal
/s/ ANTONIO F. NERI		Director	February 20, 2019
Antonio F. Neri
/s/ RAMIRO G. PERU		Director	February 20, 2019
Ramiro G. Peru
/s/ GEORGE A. SCHAEFER, JR.		Director	February 20, 2019
George A. Schaefer, Jr.

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