Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information [Text Block]

Note 22 ― Segment Information

Beginning in the first quarter of 2014, the Company combined the results of its run-off reinsurance business with other immaterial operating segments in Other Operations. Prior year segment information has been conformed to the current presentation.

The financial results of the Company's businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

• The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals. Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.
• The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Lifeprovides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

Other Operations consist of:

• corporate-owned life insurance (“COLI”);
• run-off reinsurance business that is predominantly comprised of GMDB and GMIB business that was effectively exited through reinsurance with Berkshire in 2013;
• deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and

• run-off settlement annuity business.

Corporatereflects amounts not allocated to other segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options,expense associated with its frozen pension plans, and certain corporate project and overhead costs.

The Company measures the financial results of its segments using “segment earnings (loss)”, defined as shareholders' net income (loss) before after-tax realized investment results. The Company determines segment earnings (loss) consistent with accounting policies used in preparing the consolidated financial statements, except that amounts included in Corporate are not allocated to segments. The Company allocates certain other operating expenses, such as systems and other key corporate overhead expenses, on systematic bases. Income taxes are generally computed as if each segment were filing a separate income tax return. The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance.

Summarized segment financial information for the years ended December 31, was as follows:

(In millions)	2014		2013		2012
Global Health Care
Premiums:
Guaranteed cost	$	4,600	$	4,463	$	4,256
Experience-rated		2,322		2,292		2,022
Stop loss		2,318		1,907		1,672
International health care		1,827		1,752		1,648
Dental		1,257		1,139		1,005
Medicare		5,660		5,639		4,969
Medicaid		515		317		207
Medicare Part D		1,405		1,387		1,421
Other		805		730		677
Total premiums		20,709		19,626		17,877
Feesand other revenues		4,005		3,518		3,321
Mail order pharmacy revenues		2,239		1,827		1,623
Net investment income		337		325		259
Segment revenues	$	27,290	$	25,296	$	23,080
Depreciation and amortization	$	513	$	529	$	516
Income taxes	$	1,035	$	822	$	793
Segment earnings	$	1,646	$	1,517	$	1,418

(In millions)	2014		2013		2012
Global Supplemental Benefits
Premiums	$	2,844	$	2,496	$	1,975
Fees and other revenues		52		43		30
Net investment income		109		100		90
Segment revenues	$	3,005	$	2,639	$	2,095
Depreciation and amortization	$	50	$	50	$	29
Income taxes	$	48	$	50	$	36
Equity in income of investees	$	18	$	17	$	10
Segment earnings	$	230	$	175	$	142
Group Disability and Life
Premiums:
Life	$	1,629	$	1,552	$	1,426
Disability		1,681		1,539		1,348
Other		239		257		270
Total		3,549		3,348		3,044
Fees and other revenues		86		78		65
Net investment income		335		321		300
Segment revenues	$	3,970	$	3,747	$	3,409
Depreciation and amortization	$	22	$	14	$	11
Income taxes	$	140	$	101	$	116
Segment earnings	$	317	$	259	$	279
Other Operations
Premiums	$	112	$	105	$	121
Fees and other revenues		14		(24)		(101)
Net investment income		384		408		490
Segment revenues	$	510	$	489	$	510
Depreciation and amortization	$	2	$	1	$	2
Income taxes (benefits)	$	29	$	(237)	$	43
Segment earnings (loss)	$	68	$	(394)	$	82
Corporate
Other revenues and eliminations	$	(16)	$	(14)	$	(24)
Net investment income		1		10		5
Segment revenues	$	(15)	$	(4)	$	(19)
Depreciation and amortization	$	1	$	3	$	3
Income tax benefits	$	(90)	$	(110)	$	(148)
Segment loss	$	(265)	$	(222)	$	(329)
Realized investment gains
Realized investment gains	$	154	$	213	$	44
Income taxes		48		72		13
Realized investment gains, net of taxes	$	106	$	141	$	31
Total
Premiums	$	27,214	$	25,575	$	23,017
Fees and other revenues		4,141		3,601		3,291
Mail order pharmacy revenues		2,239		1,827		1,623
Net investment income		1,166		1,164		1,144
Realized investment gains		154		213		44
Total revenues	$	34,914	$	32,380	$	29,119
Depreciation and amortization	$	588	$	597	$	560
Income taxes	$	1,210	$	698	$	853
Segment earnings	$	1,996	$	1,335	$	1,592
Realized investment gains, net of taxes	$	106	$	141	$	31
Shareholders' net income	$	2,102	$	1,476	$	1,623

Revenue from external customers includes premiums, fees and other revenues, and mail order pharmacy revenues. The following tablepresents these revenues by product type for the years ended December 31:

(In millions)	2014		2013		2012
Medical	$	24,476	$	22,933	$	20,973
Disability		1,767		1,616		1,413
Supplemental Health, Life, and Accident		4,739		4,322		3,680
Mail order pharmacy		2,239		1,827		1,623
Other		373		305		242
Total	$	33,594	$	31,003	$	27,931

Foreign and U.S. revenues from external customers for the 3 years ended December 31 are shown below. In the periods shown, no foreign country contributed more than 5% of consolidated revenues from external customers.

(In millions)	2014		2013		2012
U.S.	$	30,070	$	27,868	$	25,217
Foreign		3,524		3,135		2,714
Total	$	33,594	$	31,003	$	27,931

As a percentage of consolidated revenues, premiums from CMS were 21% in 2014 and22% in both 2013 and2012. These amounts were reported in the Global Health Care segment.