Item 16. FORM 10-K SUMMARY.

None.

-151-

Schedule II—Condensed Financial Information of Registrant

Anthem, Inc. (Parent Company Only)

Balance Sheets

(In millions, except share data)	December 31, 2019				December 31, 2018
Assets
Current assets:
Cash and cash equivalents	$	1,818			$	1,290
Fixed maturity securities, current (amortized cost of $592 and $589)	602				573
Equity securities, current	253				86
Other invested assets, current	4				10
Other receivables	92				131
Income taxes receivable	170				—
Net due from subsidiaries	602				170
Securities lending collateral	17				35
Other current assets	462				320
Total current assets	4,020				2,615
Long-term investments:
Equity securities	6				6
Other invested assets, long-term	651				616
Property and equipment, net	170				186
Deferred tax assets, net	216				209
Investments in subsidiaries	47,423				44,877
Other noncurrent assets	263				225
Total assets	$	52,749			$	48,734
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	887			$	1,429
Security trades pending payable	9				—
Securities lending payable	17				35
Income taxes payable	—				112
Current portion of long-term debt	1,598				849
Other current liabilities	237				235
Total current liabilities	2,748				2,660
Long-term debt, less current portion	17,762				17,192
Other noncurrent liabilities	511				341
Total liabilities	21,021				20,193
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 - 252,922,161 and 257,395,577	3				3
Additional paid-in capital	9,448				9,536
Retained earnings	22,573				19,988
Accumulated other comprehensive loss	(296		)		(986		)
Total shareholders’ equity	31,728				28,541
Total liabilities and shareholders’ equity	$	52,749			$	48,734

See accompanying notes.

-152-

Anthem, Inc. (Parent Company Only)

Statements of Income

	Years ended December 31
(In millions)	2019				2018				2017
Revenues
Net investment income	$	81			$	39			$	64
Net realized losses on financial instruments	(65		)		(46		)		(18		)
Other-than-temporary impairment losses on investments:
Total other-than-temporary impairment losses on investments	(23		)		(15		)		(7		)
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss)	3				—				—
Other-than-temporary impairment losses recognized in income	(20		)		(15		)		(7		)
Administrative fees and other revenue	22				2				—
Total revenues (losses)	18				(20		)		39
Expenses
General and administrative expense	88				86				437
Interest expense	723				723				727
Loss on extinguishment of debt	2				11				283
Total expenses	813				820				1,447
Loss before income tax credits and equity in net income of subsidiaries	(795		)		(840		)		(1,408		)
Income tax credits	(251		)		(238		)		(216		)
Equity in net income of subsidiaries	5,351				4,352				5,035
Net income	$	4,807			$	3,750			$	3,843

See accompanying notes.

-153-

Anthem, Inc. (Parent Company Only)

Statements of Comprehensive Income

	Years ended December 31
(in millions)	2019				2018				2017
Net income	$	4,807			$	3,750			$	3,843
Other comprehensive income, net of tax:
Change in net unrealized gains/losses on investments	680				(418		)		173
Change in non-credit component of other-than-temporary impairment losses on investments	—				(2		)		4
Change in net unrealized gains/losses on cash flow hedges	(16		)		37				(65		)
Change in net periodic pension and postretirement costs	26				(90		)		51
Foreign currency translation adjustments	—				(1		)		3
Other comprehensive income (loss)	690				(474		)		166
Total comprehensive income	$	5,497			$	3,276			$	4,009

See accompanying notes.

-154-

Anthem, Inc. (Parent Company Only)

Statements of Cash Flows

	Years ended December 31
(In millions)	2019				2018				2017
Operating activities
Net income	$	4,807			$	3,750			$	3,843
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries	(1,561		)		(744		)		(2,437		)
Net realized losses on financial instruments	65				46				18
Other-than-temporary impairment losses recognized in income	20				15				7
Loss on extinguishment of debt	2				11				283
Deferred income taxes	2				(43		)		(33		)
Amortization, net of accretion	37				43				25
Depreciation expense	69				70				69
Share-based compensation	294				226				170
Changes in operating assets and liabilities:
Receivables, net	41				(73		)		(17		)
Other invested assets, current	6				(5		)		(1		)
Other assets	(235		)		(225		)		(102		)
Amounts due (from)/ to subsidiaries	(432		)		2,259				(1,034		)
Accounts payable and accrued expenses	(608		)		303				491
Other liabilities	186				154				(61		)
Income taxes	(282		)		187				(6		)
Other, net	—				1				(2		)
Net cash provided by operating activities	2,411				5,975				1,213
Investing activities
Purchases of investments	(9,682		)		(800		)		(3,814		)
Proceeds from sales, maturities, calls and redemptions of investments	9,457				1,865				2,595
Changes in collateral and settlement of non-hedging derivatives	—				—				65
Capitalization of subsidiaries	(232		)		(4,379		)		(124		)
Changes in securities lending collateral	18				(21		)		25
Purchases of property and equipment, net of sales	(54		)		(137		)		(44		)
Other, net	—				4				18
Net cash used in investing activities	(493		)		(3,468		)		(1,279		)
Financing activities
Net (repayments of) proceeds from commercial paper borrowings	(297		)		(107		)		175
Proceeds from long-term borrowings	2,473				835				5,458
Repayments of long-term borrowings	(1,123		)		(1,684		)		(2,815		)
Changes in securities lending payable	(18		)		21				(25		)
Changes in bank overdrafts	64				(107		)		51
Premiums paid on equity call options	(1		)		—				—
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	(1,701		)		(1,685		)		(1,998		)
Change in collateral and settlements of debt-related derivatives	(34		)		23				(149		)
Cash dividends	(856		)		(812		)		(737		)
Proceeds from issuance of common stock under employee stock plans	187				173				225
Taxes paid through withholding of common stock under employee stock plans	(84		)		(81		)		(47		)
Net cash (used in) provided by financing activities	(1,390		)		(2,173		)		139
Change in cash and cash equivalents	528				334				73
Cash and cash equivalents at beginning of year	1,290				956				883
Cash and cash equivalents at end of year	$	1,818			$	1,290			$	956

See accompanying notes.

-155-

Anthem, Inc.

(Parent Company Only)

Notes to Condensed Financial Statements

December 31, 2019

(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.

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 $3,790, $3,606 and $2,268 during 2019, 2018 and 2017, 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 $38, $36 and $32 during 2019, 2018 and 2017, respectively.

Investments in Subsidiaries

Capital contributions to subsidiaries were $232, $4,379 and $124 during 2019, 2018 and 2017, respectively.

Amounts Due to and From Subsidiaries

At December 31, 2019 and 2018, Anthem reported amounts due from subsidiaries of $602 and $170, 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 $569 at December 31, 2019. There were no payments made on these guarantees in 2019.

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.

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.

-156-

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.

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, 2019, these leases had an aggregate right-of-use asset of $99, a lease liability balance of $83, operating lease expense of $7 and future lease payments as follows: 2020, $11; 2021, $11; 2022, $11; 2023, $12; 2024, $11; and thereafter $70. All other information regarding leases is contained in Note 17, “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.

-157-

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 19, 2020

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 19, 2020
Gail K. Boudreaux
/s/ JOHN E. GALLINA		Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 19, 2020
John E. Gallina
/s/ RONALD W. PENCZEK		Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)	February 19, 2020
Ronald W. Penczek
/s/ ELIZABETH E. TALLETT		Chair of the Board	February 19, 2020
Elizabeth E. Tallett
/s/ R. KERRY CLARK		Director	February 19, 2020
R. Kerry Clark
/s/ ROBERT L. DIXON, JR.		Director	February 19, 2020
Robert L. Dixon, Jr.
/s/ LEWIS HAY III		Director	February 19, 2020
Lewis Hay III
/s/ JULIE A. HILL		Director	February 19, 2020
Julie A. Hill
/s/ BAHIJA JALLAL		Director	February 19, 2020
Bahija Jallal
/s/ ANTONIO F. NERI		Director	February 19, 2020
Antonio F. Neri
/s/ RAMIRO G. PERU		Director	February 19, 2020
Ramiro G. Peru
/s/ RYAN M. SCHNEIDER		Director	February 19, 2020
Ryan M. Schneider

-158-