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, 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 securities			439						253
Other receivables			41						92
Net due from subsidiaries			—						602
Other current assets			800						653
Total current assets			2,588						4,020
Other invested assets			664						657
Property and equipment, net			209						170
Deferred tax assets, net			391						216
Investments in subsidiaries			51,739						47,423
Other noncurrent assets			211						263
Total assets			$	55,802					$	52,749
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses			$	429					$	887
Net due to subsidiaries			1,239						—
Current portion of long-term debt			700						1,598
Other current liabilities			494						263
Total current liabilities			2,862						2,748
Long-term debt, less current portion			19,310						17,762
Other noncurrent liabilities			431						511
Total liabilities			22,603						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 252,922,161			3						3
Additional paid-in capital			9,244						9,448
Retained earnings			23,802						22,573
Accumulated other comprehensive income (loss)			150						(296)
Total shareholders’ equity			33,199						31,728
Total liabilities and shareholders’ equity			$	55,802					$	52,749

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Income

			Years ended December 31
(In millions)			2020						2019						2018
Revenues
Net investment income			$	65					$	81					$	39
Net realized gains (losses) on financial instruments			28						(85)						(61)
Administrative fees and other revenue			22						22						2
Total revenues (losses)			115						18						(20)
Expenses
General and administrative expense			169						88						86
Interest expense			779						723						723
Loss on extinguishment of debt			36						2						11
Total expenses			984						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 subsidiaries			5,055						5,351						4,352
Net income			$	4,572					$	4,807					$	3,750

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Comprehensive Income

			Years ended December 31
(in millions)			2020						2019						2018
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 hedges			12						(16)						37
Change in net periodic pension and postretirement costs			(1)						26						(90)
Foreign currency translation adjustments			7						—						(1)
Other comprehensive income (loss)			446						690						(474)
Total comprehensive income			$	5,018					$	5,497					$	3,276

See accompanying notes.

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Anthem, Inc. (Parent Company Only)

Statements of Cash Flows

			Years ended December 31
(In millions)			2020						2019						2018
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 equipment			10						—						—
Depreciation and amortization			96						106						113
Share-based compensation			283						294						226
Changes in operating assets and liabilities:
Receivables, net			53						41						(73)
Other invested assets			(27)						6						(5)
Other assets			33						(235)						(225)
Amounts due to/(from) subsidiaries			1,841						(432)						2,259
Accounts payable and other liabilities			(554)						(422)						457
Income taxes			87						(282)						187
Other, net			40						2						12
Net cash provided by operating activities			4,810						2,411						5,975
Investing activities
Purchases of investments			(2,729)						(9,682)						(800)
Proceeds from sales, maturities, calls and redemptions of investments			2,593						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, net			11						—						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 borrowings			2,484						2,473						835
Repayments of long-term borrowings			(1,932)						(1,123)						(1,684)
Changes in securities lending payable			234						(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 plans			176						187						173
Taxes paid through withholding of common stock under employee stock plans			(128)						(84)						(81)
Other, net			14						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 year			1,818						1,290						956
Cash and cash equivalents at end of year			$	700					$	1,818					$	1,290

See accompanying notes.

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Anthem, Inc.

(Parent Company Only)

Notes to Condensed Financial Statements

December 31, 2020

(In Millions, Except Per Share Data)

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.

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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.

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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 18, 2021

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 18, 2021
Gail K. Boudreaux
/s/ JOHN E. GALLINA						Executive Vice President and Chief Financial Officer (Principal Financial Officer)			February 18, 2021
John E. Gallina
/s/ RONALD W. PENCZEK						Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)			February 18, 2021
Ronald W. Penczek
/s/ ELIZABETH E. TALLETT						Chair of the Board			February 18, 2021
Elizabeth E. Tallett
/s/ R. KERRY CLARK						Director			February 18, 2021
R. Kerry Clark
/s/ ROBERT L. DIXON, JR.						Director			February 18, 2021
Robert L. Dixon, Jr.
/s/ LEWIS HAY III						Director			February 18, 2021
Lewis Hay III
/s/ JULIE A. HILL						Director			February 18, 2021
Julie A. Hill
/s/ BAHIJA JALLAL						Director			February 18, 2021
Bahija Jallal
/s/ ANTONIO F. NERI						Director			February 18, 2021
Antonio F. Neri
/s/ RAMIRO G. PERU						Director			February 18, 2021
Ramiro G. Peru
/s/ RYAN M. SCHNEIDER						Director			February 18, 2021
Ryan M. Schneider

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