PALMETTO GBA 2010 ANNUAL REPORT

STATEMENTS OF CASH FLOWS (IN T HOUS A ND S)
3 4
Year ended December 31,
2010 2009
Cash flows from operating activities
Net income $ 5,066 $ 4,193
Adjustments to reconcile net income to net cash
provided from operating activities:
Depreciation 1,594 1,003
Amortization on bonds 4 —
Realized loss on investments 127 —
Equity in income of affiliate 950 837
Deferred income tax provision (1,339) 144
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable (10,010) 5,143
(Increase)/decrease in receivables from affiliates (463) 13,417
Decrease /(increase) in accrued revenue 4,567 (5,304)
Increase in prepaid expense (207) (366)
(Decrease)/increase in accrued payroll, taxes and benefits (1,826) 339
Increase/(decrease) in payable to parent 988 (1,555)
Increase/(decrease) in other liabilities 6,405 (2,312)
Net cash provided from operating activities 5,856 15,539
Cash flows from investing activities:
Capital contribution to affiliate (5,000) —
Fixed assets purchased (1,824) (815)
Investments sold - available-for-sale 956 —
Investments purchased - held-to-maturity (1,547) —
Investments purchased - available-for-sale (3,553) —
Net cash used in investing activities (10,968) (815)
Cash flows from financing activities:
Capital contribution from parent — (135)
Net (decrease) increase in cash
and cash equivalents from continuing operations (5,112) 14,589
PALMETTO GBA, LLC
(a single-member, limited liability company owned
by BlueCross BlueShield of South Carolina)
The accompanying notes are an integral part of
these financial statements.