UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
OR
o TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-13083
WELLPOINT HEALTH NETWORKS INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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95-4635504 |
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(State or other jurisdiction of |
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(IRS Employer Identification No.) |
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1 WellPoint Way, Thousand Oaks, |
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91362 |
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(Address of principal executive offices) |
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(Zip Code) |
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(818) 234-4000 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ý No o
As of August 4, 2004, there were approximately 157,061,965 shares of Common Stock, $0.01 par value of the registrant outstanding.
WellPoint Health Networks Inc.
Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2004
Table of Contents
ITEM 1. Financial Statements
WellPoint Health Networks Inc.
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(In thousands, except share data) |
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June 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
956,711 |
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$ |
1,030,327 |
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Investments - available-for-sale, at fair value |
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6,844,321 |
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6,726,802 |
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Securities lending collateral |
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846,991 |
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914,173 |
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Receivables, net |
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1,522,361 |
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1,356,107 |
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Deferred tax assets, net |
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385,751 |
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355,110 |
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Other current assets |
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359,356 |
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258,588 |
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Total Current Assets |
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10,915,491 |
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10,641,107 |
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Property and equipment, net |
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463,090 |
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441,936 |
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Intangible assets, net |
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927,440 |
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950,954 |
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Goodwill, net |
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2,295,651 |
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2,321,208 |
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Long-term investments, at market value |
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196,812 |
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161,784 |
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Other non-current assets |
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254,996 |
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271,689 |
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Total Assets |
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$ |
15,053,480 |
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$ |
14,788,678 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Medical claims payable |
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$ |
2,649,916 |
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$ |
2,747,074 |
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Reserves for future policy benefits |
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108,337 |
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129,135 |
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Unearned premiums |
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690,965 |
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629,831 |
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Accounts payable and accrued expenses |
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1,398,428 |
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1,411,391 |
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Experience rated and other refunds |
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255,226 |
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267,382 |
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Income taxes payable |
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187,389 |
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241,979 |
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Security trades pending payable |
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146,006 |
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27,456 |
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Securities lending payable |
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846,991 |
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914,173 |
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Other current liabilities |
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731,520 |
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712,273 |
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Total Current Liabilities |
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7,014,778 |
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7,080,694 |
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Accrued postretirement benefits |
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155,331 |
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152,738 |
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Reserves for future policy benefits, non-current |
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313,825 |
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288,197 |
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Long-term debt |
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803,294 |
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1,238,267 |
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Deferred tax liabilities |
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325,918 |
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370,737 |
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Other non-current liabilities |
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223,789 |
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228,096 |
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Total Liabilities |
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8,836,935 |
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9,358,729 |
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Stockholders’ Equity: |
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Preferred Stock - $0.01 par value, 50,000,000 shares authorized, none issued and outstanding |
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— |
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— |
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Common Stock - $0.01 par value, 300,000,000 shares authorized, 159,202,083 and 157,006,322 issued at June 30, 2004 and December 31, 2003, respectively |
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1,592 |
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1,570 |
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Treasury stock, at cost, 2,171,017 and 4,248,172 shares at June 30, 2004 and December 31, 2003, respectively |
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(164,726 |
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(298,049 |
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Additional paid-in capital |
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2,447,130 |
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2,348,506 |
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Retained earnings |
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3,845,639 |
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3,250,483 |
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Accumulated other comprehensive income |
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86,910 |
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127,439 |
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Total Stockholders’ Equity |
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6,216,545 |
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5,429,949 |
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Total Liabilities and Stockholders’ Equity |
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$ |
15,053,480 |
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$ |
14,788,678 |
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See the accompanying notes to the Consolidated Financial Statements.
1
WellPoint Health Networks Inc.
Consolidated Income Statements
(Unaudited)
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Quarter Ended June 30, |
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Six Months Ended June 30, |
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(In thousands, except earnings per share) |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues: |
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