filings.toolsItem 16. FORM 10-K SUMMARY.
18K characters. Original on sec.gov · Markdown
Item 16. FORM 10-K SUMMARY.
None.
Schedule II—Condensed Financial Information of Registrant
Elevance Health, Inc. (Parent Company Only)
Balance Sheets
| (In millions, except share data) | December 31, 2023 | December 31, 2022 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,483 | $ | 942 | |||||||
| Fixed maturity securities (amortized cost of $0 and $175; allowance for credit losses of $0 and $0) | — | 163 | |||||||||
| Equity securities | 80 | 104 | |||||||||
| Other receivables | 58 | 55 | |||||||||
| Other current assets | 959 | 721 | |||||||||
| Total current assets | 2,580 | 1,985 | |||||||||
| Other invested assets | 822 | 783 | |||||||||
| Property and equipment, net | 178 | 187 | |||||||||
| Deferred tax assets, net | 199 | 313 | |||||||||
| Investments in subsidiaries | 63,426 | 58,978 | |||||||||
| Other noncurrent assets | 217 | 240 | |||||||||
| Total assets | $ | 67,422 | $ | 62,486 | |||||||
| Liabilities and shareholders’ equity | |||||||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 1,709 | $ | 894 | |||||||
| Net due to subsidiaries | 734 | 789 | |||||||||
| Current portion of long-term debt | 1,649 | 1,500 | |||||||||
| Other current liabilities | 413 | 361 | |||||||||
| Total current liabilities | 4,505 | 3,544 | |||||||||
| Long-term debt, less current portion | 23,221 | 22,324 | |||||||||
| Other noncurrent liabilities | 390 | 375 | |||||||||
| Total liabilities | 28,116 | 26,243 | |||||||||
| 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 - 233,071,088 and 237,958,067 | 2 | 2 | |||||||||
| Additional paid-in capital | 8,868 | 9,084 | |||||||||
| Retained earnings | 31,749 | 29,647 | |||||||||
| Accumulated other comprehensive loss | (1,313) | (2,490) | |||||||||
| Total shareholders’ equity | 39,306 | 36,243 | |||||||||
| Total liabilities and shareholders’ equity | $ | 67,422 | $ | 62,486 |
See accompanying notes.
Elevance Health, Inc. (Parent Company Only)
Statements of Income
| Years ended December 31 | |||||||||||||||||
| (In millions) | 2023 | 2022 | 2021 | ||||||||||||||
| Revenues | |||||||||||||||||
| Net investment income | $ | 25 | $ | 4 | $ | 6 | |||||||||||
| Net (losses) gains on financial instruments | (100) | 2 | 6 | ||||||||||||||
| Service fees | 8 | 7 | 24 | ||||||||||||||
| Total revenues | (67) | 13 | 36 | ||||||||||||||
| Expenses | |||||||||||||||||
| Operating expense | 352 | 188 | 119 | ||||||||||||||
| Interest expense | 1,017 | 845 | 794 | ||||||||||||||
| Loss on extinguishment of debt | — | — | 21 | ||||||||||||||
| Total expenses | 1,369 | 1,033 | 934 | ||||||||||||||
| Loss before income tax credits and equity in net income of subsidiaries | (1,436) | (1,020) | (898) | ||||||||||||||
| Income tax credits | (214) | (461) | (244) | ||||||||||||||
| Equity in net income of subsidiaries | 7,209 | 6,453 | 6,812 | ||||||||||||||
| Shareholders’ net income | $ | 5,987 | $ | 5,894 | $ | 6,158 |
See accompanying notes.
Elevance Health, Inc. (Parent Company Only)
Statements of Comprehensive Income
| Years ended December 31 | |||||||||||||||||
| (in millions) | 2023 | 2022 | 2021 | ||||||||||||||
| Shareholders’ net income | $ | 5,987 | $ | 5,894 | $ | 6,158 | |||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Change in net unrealized gains/losses on investments | 1,123 | (2,249) | (455) | ||||||||||||||
| Change in non-credit component of impairment losses on investments | — | (3) | 2 | ||||||||||||||
| Change in net unrealized gains/losses on cash flow hedges | 18 | 10 | 11 | ||||||||||||||
| Change in net periodic pension and postretirement costs | 40 | (70) | 123 | ||||||||||||||
| Change in future policy benefits | (3) | 32 | (7) | ||||||||||||||
| Foreign currency translation adjustments | (1) | (13) | (9) | ||||||||||||||
| Other comprehensive income (loss) | 1,177 | (2,293) | (335) | ||||||||||||||
| Total shareholders’ comprehensive income | $ | 7,164 | $ | 3,601 | $ | 5,823 |
See accompanying notes.
Elevance Health, Inc. (Parent Company Only)
Statements of Cash Flows
| Years ended December 31 | |||||||||||||||||
| (In millions) | 2023 | 2022 | 2021 | ||||||||||||||
| Net cash provided by operating activities | $ | 4,113 | $ | 1,447 | $ | 2,038 | |||||||||||
| Investing activities | |||||||||||||||||
| Purchases of investments | (95) | (367) | (2,059) | ||||||||||||||
| Proceeds from sales, maturities, calls and redemptions of investments | 212 | 618 | 2,449 | ||||||||||||||
| Repayment (issuance) of note to subsidiary | — | 1,500 | (1,500) | ||||||||||||||
| Capitalization of subsidiaries | (363) | (411) | (807) | ||||||||||||||
| Changes in securities lending collateral | 42 | 36 | 173 | ||||||||||||||
| Purchases of property and equipment, net of sales | (55) | (47) | (77) | ||||||||||||||
| Net cash provided by (used in) investing activities | (259) | 1,329 | (1,821) | ||||||||||||||
| Financing activities | |||||||||||||||||
| Net (repayments of) proceeds from short-term borrowings | — | (300) | 50 | ||||||||||||||
| Proceeds from long-term borrowings | 2,574 | 3,071 | 3,462 | ||||||||||||||
| Repayments of long-term borrowings | (1,909) | (1,899) | (1,068) | ||||||||||||||
| Changes in securities lending payable | (42) | (36) | (173) | ||||||||||||||
| Repurchase and retirement of common stock | (2,676) | (2,316) | (1,900) | ||||||||||||||
| Cash dividends | (1,466) | (1,290) | (1,158) | ||||||||||||||
| Proceeds from issuance of common stock under employee stock plans | 152 | 182 | 203 | ||||||||||||||
| Taxes paid through withholding of common stock under employee stock plans | (99) | (93) | (102) | ||||||||||||||
| Other, net | 153 | 217 | 399 | ||||||||||||||
| Net cash used in financing activities | (3,313) | (2,464) | (287) | ||||||||||||||
| Change in cash and cash equivalents | 541 | 312 | (70) | ||||||||||||||
| Cash and cash equivalents at beginning of year | 942 | 630 | 700 | ||||||||||||||
| Cash and cash equivalents at end of year | $ | 1,483 | $ | 942 | $ | 630 |
See accompanying notes.
Elevance Health, Inc.
(Parent Company Only)
Notes to Condensed Financial Statements
December 31, 2023
(In Millions, Except Per Share Data)
1. Basis of Presentation and Significant Accounting Policies
In the parent company only financial statements of Elevance Health, Inc. (“Elevance Health”), Elevance Health’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of the subsidiaries. Elevance Health’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 Elevance Health.
Elevance Health’s parent company only financial statements should be read in conjunction with Elevance Health’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
Elevance Health received cash dividends from subsidiaries of $4,909, $3,097 and $3,134 during 2023, 2022 and 2021, respectively.
Dividends to Subsidiaries
Certain subsidiaries of Elevance Health own shares of Elevance Health common stock. Elevance Health paid cash dividends to subsidiaries related to these shares of common stock in the amount of $71, $61 and $54 during 2023, 2022 and 2021, respectively.
Investments in Subsidiaries
Capital contributions to subsidiaries were $363, $411 and $3,271 during 2023, 2022 and 2021, respectively.
Amounts Due From and To Subsidiaries
At December 31, 2023 and 2022, Elevance Health reported amounts due (to) from subsidiaries of $(734) and $(789), respectively. The amounts due (to) and from subsidiaries primarily include amounts for allocated operating expenses or daily cash management activities. These items are routinely settled, and as such, are classified as current liabilities or assets.
In June 2021 Elevance Health entered into a short-term loan agreement with a subsidiary for the amount of $1,500, which is also included in amounts due from subsidiaries at December 31, 2021. This loan was repaid in February 2022.
Guarantees on Behalf of Subsidiaries
Elevance Health guarantees contractual or financial obligations or solvency requirements for certain of its subsidiaries. These guarantees approximated $435 at December 31, 2023. There were no payments made on these guarantees in 2023.
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 Elevance Health 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 Elevance Health 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 Elevance Health 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 Elevance Health and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.
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.
| ELEVANCE HEALTH, INC. | |||||
| By: | /s/ GAIL K. BOUDREAUX | ||||
| Gail K. Boudreaux President and Chief Executive Officer |
Dated: February 21, 2024
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 21, 2024 | |||||||||
| Gail K. Boudreaux | |||||||||||
| /s/ MARK B. KAYE | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 21, 2024 | |||||||||
| Mark B. Kaye | |||||||||||
| /s/ RONALD W. PENCZEK | Chief Accounting Officer and Controller (Principal Accounting Officer) | February 21, 2024 | |||||||||
| Ronald W. Penczek | |||||||||||
| /s/ ELIZABETH E. TALLETT | Chair of the Board | February 21, 2024 | |||||||||
| Elizabeth E. Tallett | |||||||||||
| /s/ R. KERRY CLARK | Director | February 21, 2024 | |||||||||
| R. Kerry Clark | |||||||||||
| /s/ SUSAN D. DEVORE | Director | February 21, 2024 | |||||||||
| Susan D. DeVore | |||||||||||
| /s/ ROBERT L. DIXON, JR. | Director | February 21, 2024 | |||||||||
| Robert L. Dixon, Jr. | |||||||||||
| /s/ LEWIS HAY III | Director | February 21, 2024 | |||||||||
| Lewis Hay III | |||||||||||
| /s/ BAHIJA JALLAL | Director | February 21, 2024 | |||||||||
| Bahija Jallal | |||||||||||
| /s/ ANTONIO F. NERI | Director | February 21, 2024 | |||||||||
| Antonio F. Neri | |||||||||||
| /s/ RAMIRO G. PERU | Director | February 21, 2024 | |||||||||
| Ramiro G. Peru | |||||||||||
| /s/ RYAN M. SCHNEIDER | Director | February 21, 2024 | |||||||||
| Ryan M. Schneider | |||||||||||
| /s/ DEANNA D. STRABLE | Director | February 21, 2024 | |||||||||
| Deanna D. Strable |
Previous: Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.