PART II ITEM 8 Financial Statements and Supplementary Data Cigna Corporation Consolidated Statements of Cash Flows For the years ended December 31, (In millions) 2012 2011 2010 Cash Flows from Operating Activities Net income $ 1,624 $ 1,261 $ 1,283 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 560 345 292 Realized investment gains (44) (62) (75) Deferred income taxes 134 217 188 Gains on sales of businesses (excluding discontinued operations) (18) (25) (13) Net changes in assets and liabilities, net of non-operating effects: Premiums, accounts and notes receivable (71) (50) 62 Reinsurance recoverables 62 19 37 Deferred policy acquisition costs (159) (129) (94) Other assets 31 (307) 3 Insurance liabilities 245 154 325 Accounts payable, accrued expenses and other liabilities (132) 344 (272) Current income taxes 29 (246) 2 Proceeds from sales of mortgage loans held for sale 61 - - Other, net 28 (30) 5 NET CASH PROVIDED BY OPERATING ACTIVITIES 2,350 1,491 1,743 Cash Flows from Investing Activities Proceeds from investments sold: Fixed maturities 583 830 822 Equity securities 8 46 4 Commercial mortgage loans 380 253 63 Other (primarily short-term and other long-term investments) 831 1,915 1,102 Investment maturities and repayments: Fixed maturities 1,507 1,265 1,084 Commercial mortgage loans 342 385 70 Investments purchased: Fixed maturities (2,326) (2,877) (2,587) Equity securities (8) (20) (12) Commercial mortgage loans (364) (487) (239) Other (primarily short-term and other long-term investments) (821) (2,056) (810) Property and equipment purchases (408) (422) (300) Acquisitions and dispositions, net of cash acquired (3,581) (102) (539) NET CASH USED IN INVESTING ACTIVITIES (3,857) (1,270) (1,342) Cash Flows from Financing Activities Deposits and interest credited to contractholder deposit funds 1,337 1,323 1,295 Withdrawals and benefit payments from contractholder deposit funds (1,264) (1,178) (1,205) Change in cash overdraft position 25 (1) 59 Net change in short-term debt 98 - - Net proceeds on issuance of long-term debt - 2,676 543 Repayment of long-term debt (326) (451) (270) Repurchase of common stock (208) (225) (201) Issuance of common stock 121 734 64 Common dividends paid (11) (11) (11) NET CASH (USED IN) / PROVIDED BY FINANCING ACTIVITIES (228) 2,867 274 Effect of foreign currency rate changes on cash and cash equivalents 23 (3) 6 Net increase (decrease) in cash and cash equivalents (1,712) 3,085 681 Cash and cash equivalents, beginning of year 4,690 1,605 924 Cash and cash equivalents, end of year $ 2,978 $ 4,690 $ 1,605 Supplemental Disclosure of Cash Information: Income taxes paid, net of refunds $ 655 $ 633 $ 326 Interest paid $ 248 $ 185 $ 180 The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements. 68 CIGNA CORPORATION -  2012 Form  10-K