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SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended
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Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION | SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION CONDENSED BALANCE SHEETS
| December 31,
| 2022 |  | 2021
| (in millions, except share amounts)
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 614 |  |  | $ | 906 |
Investment securities | 320 |  |  | 428 |
Receivable from operating subsidiaries | 1,807 |  |  | 1,316 |
Other current assets | 577 |  |  | 545 |
Total current assets | 3,318 |  |  | 3,195 |
Property and equipment, net | 2,393 |  |  | 2,223 |
Investment in subsidiaries | 27,905 |  |  | 26,885 |
Other long-term assets | 282 |  |  | 666 |
Total assets | $ | 33,898 |  |  | $ | 32,969 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |
Current liabilities: |  |  |
Payable to operating subsidiaries | $ | 5,421 |  |  | $ | 2,056 |
Short-term debt | 2,092 |  |  | 1,953 |
Current portion of notes payable to operating subsidiaries | 36 |  |  | 36 |
Book overdraft | 73 |  |  | 68 |
Other current liabilities | 1,425 |  |  | 1,460 |
Total current liabilities | 9,047 |  |  | 5,573 |
Long-term debt | 9,034 |  |  | 10,541 |
Other long-term liabilities | 506 |  |  | 775 |
Total liabilities | 18,587 |  |  | 16,889 |
Commitments and contingencies |  |  |
Stockholders’ equity: |  |  |
Preferred stock, $1 par; 10,000,000 shares authorized; none issued | — |  |  | — |
Common stock, $0.16 2/3 par; 300,000,000 shares authorized; 198,666,598 shares issued at December 31, 2022 and 198,648,742 shares issued at December 31, 2021 | 33 |  |  | 33 |
Capital in excess of par value | 3,246 |  |  | 3,082 |
Retained earnings | 25,492 |  |  | 23,086 |
Accumulated other comprehensive (loss) income | (1,304) |  |  | 42 |
Treasury stock, at cost, 73,691,955 shares at December 31, 2022 and 69,846,758 shares at December 31, 2021 | (12,156) |  |  | (10,163) |
Total stockholders' equity | 15,311 |  |  | 16,080 |
Total liabilities and stockholders' equity | $ | 33,898 |  |  | $ | 32,969 |
See accompanying notes to the parent company financial statements. SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION CONDENSED STATEMENTS OF INCOME
| For the year ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Revenues: |  |  |  |  |
Management fees charged to operating subsidiaries | $ | 1,554 |  |  | $ | 1,633 |  |  | $ | 2,216 |
Investment and other (loss) income, net | (88) |  |  | (266) |  |  | 763 |
Total revenues | 1,466 |  |  | 1,367 |  |  | 2,979 |
Expenses: |  |  |  |  |
Operating costs | 1,700 |  |  | 1,404 |  |  | 2,204 |
Depreciation | 581 |  |  | 488 |  |  | 397 |
Interest | 400 |  |  | 313 |  |  | 283 |
Total expenses | 2,681 |  |  | 2,205 |  |  | 2,884 |
Other (income) expense, net | — |  |  | (672) |  |  | 60 |
(Loss) income before income taxes and equity in net earnings of subsidiaries | (1,215) |  |  | (166) |  |  | 35 |
(Benefit) provision for income taxes | (266) |  |  | (259) |  |  | 18 |
(Loss) income before equity in net earnings of subsidiaries | (949) |  |  | 93 |  |  | 17 |
Equity in net earnings of subsidiaries | 3,751 |  |  | 2,761 |  |  | 3,269 |
Equity in net earnings of equity method investments | — |  |  | 79 |  |  | 81 |
Net income | $ | 2,802 |  |  | $ | 2,933 |  |  | $ | 3,367 |
See accompanying notes to the parent company financial statements. SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
| For the year ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net income attributable to Humana | $ | 2,806 |  |  | $ | 2,933 |  |  | $ | 3,367 |
Other comprehensive income (loss): |  |  |  |  |
Change in gross unrealized investment (losses) gains | (1,819) |  |  | (356) |  |  | 393 |
Effect of income taxes | 418 |  |  | 81 |  |  | (89) |
Total change in unrealized investment (losses) gains, net of tax | (1,401) |  |  | (275) |  |  | 304 |
Reclassification adjustment for net realized losses (gains) included in investment income | 72 |  |  | (103) |  |  | (90) |
Effect of income taxes | (17) |  |  | 23 |  |  | 20 |
Total reclassification adjustment, net of tax | 55 |  |  | (80) |  |  | (70) |
Other comprehensive (loss) income, net of tax | (1,346) |  |  | (355) |  |  | 234 |
Comprehensive income attributable to equity method investments | — |  |  | 6 |  |  | 1 |
Comprehensive income attributable to Humana | $ | 1,460 |  |  | $ | 2,584 |  |  | $ | 3,602 |
See accompanying notes to the parent company financial statements. SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION CONDENSED STATEMENTS OF CASH FLOWS
| For the year ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Net cash provided by operating activities | $ | 4,868 |  |  | $ | 2,853 |  |  | $ | 2,531 |
Cash flows from investing activities: |  |  |  |  |
Acquisitions, net of cash acquired | (337) |  |  | (4,187) |  |  | (709) |
Capital contributions to operating subsidiaries | (484) |  |  | (2,580) |  |  | (538) |
Purchases of property and equipment, net | (931) |  |  | (958) |  |  | (785) |
Purchases of investment securities | (63) |  |  | (200) |  |  | (460) |
Proceeds from sale of investment securities | 468 |  |  | 71 |  |  | 13 |
Maturities of investment securities | 30 |  |  | 122 |  |  | 411 |
Net cash used in investing activities | (1,317) |  |  | (7,732) |  |  | (2,068) |
Cash flows from financing activities: |  |  |  |  |
Proceeds from issuance of senior notes, net | 1,976 |  |  | 2,953 |  |  | 1,088 |
Repayments of senior notes | (1,000) |  |  | — |  |  | (400) |
(Repayments) proceeds from issuance of commercial paper, net | (376) |  |  | 352 |  |  | 295 |
Proceeds from issuance of term loan | — |  |  | 2,500 |  |  | 1,000 |
Repayment of term loan | (2,000) |  |  | — |  |  | (1,000) |
Change in book overdraft | 5 |  |  | (52) |  |  | 80 |
Common stock repurchases | (2,096) |  |  | (79) |  |  | (1,820) |
Dividends paid | (392) |  |  | (354) |  |  | (323) |
Proceeds from stock option exercises and other | 40 |  |  | 29 |  |  | 47 |
Net cash (used in) provided by financing activities | (3,843) |  |  | 5,349 |  |  | (1,033) |
(Decrease) increase in cash and cash equivalents | (292) |  |  | 470 |  |  | (570) |
Cash and cash equivalents at beginning of year | 906 |  |  | 436 |  |  | 1,006 |
Cash and cash equivalents at end of year | $ | 614 |  |  | $ | 906 |  |  | $ | 436 |
See accompanying notes to the parent company financial statements. SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION NOTES TO CONDENSED FINANCIAL STATEMENTS BASIS OF PRESENTATIONParent company financial information has been derived from our consolidated financial statements and excludes the accounts of all operating subsidiaries. This information should be read in conjunction with our consolidated financial statements.TRANSACTIONS WITH SUBSIDIARIES Services Fee Through intercompany service agreements approved, if required, by state regulatory authorities, Humana Inc., our parent company, charges a services fee for reimbursement of certain centralized services provided to its subsidiaries including information systems, disbursement, investment and cash administration, marketing, legal, finance, and medical and executive management oversight. Dividends Cash dividends received from subsidiaries and included as a component of net cash provided by operating activities were $1.3 billion in 2022, $1.6 billion in 2021, and $1.3 billion in 2020. Guarantee Through indemnity agreements approved by state regulatory authorities, certain of our regulated subsidiaries generally are guaranteed by our parent company in the event of insolvency for: (1) member coverage for which premium payment has been made prior to insolvency; (2) benefits for members then hospitalized until discharged; and (3) payment to providers for services rendered prior to insolvency. Our parent has also guaranteed the obligations of our military services subsidiaries and funding to maintain required statutory capital levels of certain other regulated subsidiaries. REGULATORY REQUIREMENTS Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash transfers to Humana Inc., our parent company, and require minimum levels of equity as well as limit investments to approved securities. The amount of dividends that may be paid to Humana Inc. by these subsidiaries, without prior approval by state regulatory authorities, or ordinary dividends, is limited based on the entity’s level of statutory income and statutory capit al and surplus. If the dividend, together with other dividends paid within the preceding twelve months, exceeds a specified statutory limit or is paid from sources other than earned surplus, it is generally considered an extraordinary dividend requiring prior regulatory approval. In most states, prior notification is provided before paying a dividend even if approval is not required. Although minimum required levels of equity are largely based on premium volume, product mix, and the quality of assets held, minimum requirements vary significantly at the state level. Our state regulated insurance subsidiaries had aggregate statutory capital and surplus of approximately $11.3 billion and $9.6 billion as of December 31, 2022 and 2021, respectively, which exceeded aggregate minimum regulatory requirements of $8.4 billion and $7.6 billion, respectively. The amount of ordinary dividends that may be paid to our parent company in 2023 is approximately $1.8 billion in the aggregate. The amount, timing and mix of ordinary and extraordinary dividend payments will vary due to state regulatory requirements, the level of excess statutory capital and surplus and expected future surplus requirements related to, for example, premium volume and product mix. Actual dividends that were paid to our parent company were approximately $1.3 billion in 2022, $1.6 billion in 2021, and $1.3 billion in 2020. Our use of operating cash flows derived from our non-insurance subsidiaries, such as in our Healthcare Services segment, is generally not restricted by state departments of insurance (or comparable state regulators).ACQUISITIONSRefer to Note 3 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of certain acquisitions. During 2022, 2021 and 2020, we funded certain non-regulated subsidiary acquisitions with contributions from Humana Inc., our parent company, included in capital contributions in the condensed statement of cash flows.INCOME TAXESRefer to Note 12 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of income taxes.DEBTRefer to Note 13 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of debt.STOCKHOLDERS' EQUITYRefer to Note 16 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of stockholders’ equity, including stock repurchases and stockholder dividends.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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