| Condensed Balance Sheets |
Centene Corporation (Parent Company Only) Condensed Balance Sheets (In millions, except share data) | | | | | | | | | | December 31, | | 2014 | | 2013 | ASSETS | | | | Current assets: | | | | Cash and cash equivalents | $ | 3 |
| | $ | 3 |
| Short term investments, at fair value (amortized cost $8 and $6, respectively) | 8 |
| | 6 |
| Other current assets | 378 |
| | 125 |
| Total current assets | 389 |
| | 134 |
| Long term investments, at fair value (amortized cost $10 and $8, respectively) | 10 |
| | 8 |
| Investment in subsidiaries | 2,296 |
| | 1,667 |
| Other long term assets | 38 |
| | 32 |
| Total assets | $ | 2,733 |
| | $ | 1,841 |
| | | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current liabilities | $ | 24 |
| | $ | 5 |
| Long term debt | 815 |
| | 591 |
| Other long term liabilities | 3 |
| | 2 |
| Total liabilities | 842 |
| | 598 |
| | | | | Redeemable noncontrolling interest | 148 |
| | — |
| | | | | Stockholders' equity: | | | | Common stock, $.001 par value; authorized 200,000,000 shares; 124,274,864 issued and 118,433,416 outstanding at December 31, 2014, and 117,346,430 issued and 110,638,478 outstanding at December 31, 2013 | — |
| | — |
| Additional paid-in capital | 840 |
| | 594 |
| Accumulated other comprehensive loss | (1 | ) | | (3 | ) | Retained earnings | 1,003 |
| | 732 |
| Treasury stock, at cost (5,841,448 and 6,707,952 shares, respectively) | (98 | ) | | (89 | ) | Total Centene stockholders' equity | 1,744 |
| | 1,234 |
| Noncontrolling interest | (1 | ) | | 9 |
| Total stockholders' equity | 1,743 |
| | 1,243 |
| Total liabilities and stockholders' equity | $ | 2,733 |
| | $ | 1,841 |
|
|
| Condensed Statements Of Operations |
Centene Corporation (Parent Company Only) Condensed Statements of Operations (In millions, except share data) | | | | | | | | | | | | | | Year Ended December 31, | | 2014 | | 2013 | | 2012 | Expenses: | | | | | | General and administrative expenses | $ | 3 |
| | $ | 4 |
| | $ | 4 |
| Other income (expense): | | | | | | Investment and other income | 1 |
| | 1 |
| | 20 |
| Interest expense | (30 | ) | | (23 | ) | | (16 | ) | Earnings (loss) before income taxes | (32 | ) | | (26 | ) | | — |
| Income tax benefit | (8 | ) | | (15 | ) | | (10 | ) | Net earnings (loss) before equity in subsidiaries | (24 | ) | | (11 | ) | | 10 |
| Equity in earnings from subsidiaries | 285 |
| | 173 |
| | 66 |
| Net earnings | 261 |
| | 162 |
| | 76 |
| (Earnings) loss attributable to noncontrolling interests | 7 |
| | (1 | ) | | 13 |
| Net earnings attributable to Centene | 268 |
| | 161 |
| | 89 |
| | | | | | | Net earnings per share from continuing operations: | | | | | | Basic earnings per common share | $ | 2.30 |
| | $ | 1.49 |
| | $ | 0.86 |
| Diluted earnings per common share | $ | 2.23 |
| | $ | 1.43 |
| | $ | 0.83 |
| Weighted average number of shares outstanding: | | | | | | Basic | 116,345,764 |
| | 108,253,090 |
| | 103,018,732 |
| Diluted | 120,360,212 |
| | 112,494,346 |
| | 107,428,750 |
|
|
| Condensed Statements Of Cash Flows |
Centene Corporation (Parent Company Only) Condensed Statements of Cash Flows (In millions)
| | | | | | | | | | | | | | Year Ended December 31, | | 2014 | | 2013 | | 2012 | Cash flows from operating activities: | | | | | | Cash provided by operating activities | $ | 317 |
| | $ | 302 |
| | $ | 328 |
| Cash flows from investing activities: | | | | | | Net dividends from and capital contributions to subsidiaries | (384 | ) | | (417 | ) | | (540 | ) | Purchase of investments | (32 | ) | | (12 | ) | | (7 | ) | Sales and maturities of investments | 14 |
| | 10 |
| | 30 |
| Acquisitions | (137 | ) | | (67 | ) | | — |
| Net cash used in investing activities | (539 | ) | | (486 | ) | | (517 | ) | Cash flows from financing activities: | | | | | | Proceeds from borrowings | 1,875 |
| | 180 |
| | 400 |
| Payment of long term debt | (1,650 | ) | | (30 | ) | | (215 | ) | Proceeds from exercise of stock options | 8 |
| | 9 |
| | 16 |
| Proceeds from stock offering | — |
| | 15 |
| | — |
| Common stock repurchases | (29 | ) | | (20 | ) | | (13 | ) | Debt issue costs | (7 | ) | | (3 | ) | | (4 | ) | Contributions from noncontrolling interest | 6 |
| | 8 |
| | 1 |
| Purchase of noncontrolling interest | — |
| | — |
| | (14 | ) | Excess tax benefits from stock compensation | 19 |
| | 6 |
| | 11 |
| Net cash provided by financing activities | 222 |
| | 165 |
| | 182 |
| Net increase (decrease) in cash and cash equivalents | — |
| | (19 | ) | | (7 | ) | Cash and cash equivalents, beginning of period | 3 |
| | 22 |
| | 29 |
| Cash and cash equivalents, end of period | $ | 3 |
| | $ | 3 |
| | $ | 22 |
|
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