Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information [Abstract]

Segment Information [Text Block]

Note 15 ― Segment Information

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 Life provides 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 businesses 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.

Corporate reflects amounts not allocated to operating 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 frozen pension plans and certain corporate project and overhead costs.

Beginning on January 1, 2015, the Company measures the financial results of its segments using “adjusted income from operations”, defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses, amortization of other acquired intangible assets and special items, if any, that neither relate to the ordinary course of our business nor reflect our underlying business performance. The Company previously reported “segment earnings” as its measure of segment profitability, defined as shareholders' net income excluding realized investment results.Prior period segment information has been restated to reflect this new performance metric. The Company changed toadjusted income (loss) from operations as its principal measure of segment performance because we believe it better presents the underlying results of operations of our businesses and permits analysis of trends in underlying revenue, expenses and profitability. Amortization of other intangible assets relates to our acquisition activities, such as HealthSpring, and includes amortization of internal-use software acquired through acquisitions. The amortization associated with these transactions is excluded from adjusted income from operations because it does not relate to the core performance of our business operations. We exclude special items from adjusted income from operations because management does not believe they are representative of our underlying results of operations.

For the three months and six months endedJune 30, 2015, the Company reported a special item charge consisting of a $100 million pre-tax loss ($65 million after-tax) on the early extinguishment of debt resulting from the Company's redemption of its 2.75% Notes due 2016 and 8.5% Notes due 2019. See Note 12to the Consolidated Financial Statements for additional information. There were no special items for the three months and the six months endedJune 30, 2014.

Summarized segment financial information was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Premiums, Fees and other revenues and Mail order pharmacy revenues
Global Health Care	$	7,416	$	6,726	$	14,787	$	13,272
Global Supplemental Benefits		756		729		1,499		1,419
Group Disability and Life		978		891		1,954		1,806
Other Operations		30		30		62		60
Corporate		(6)		(2)		(10)		(6)
Total	$	9,174	$	8,374	$	18,292	$	16,551
Shareholders' net income
Adjusted income from operations:
Global Health Care	$	528	$	428	$	972	$	895
Global Supplemental Benefits		77		64		146		121
Group Disability and Life		106		110		157		177
Other Operations		18		13		38		30
Segment results		729		615		1,313		1,223
Corporate		(65)		(56)		(136)		(131)
Realized investment gains, net of taxes		13		43		61		70
Amortization of other acquired intangible assets, net of taxes		(24)		(29)		(52)		(61)
Special Item, net of taxes (see Note 12 to the Consolidated Financial Statements)		(65)		-		(65)		-
Shareholders' net income	$	588	$	573	$	1,121	$	1,101

The Company had net receivables from the Centers for Medicare and Medicaid Services (“CMS”) of $1.6 billion as of June 30, 2015and $0.8billion as of December 31, 2014. These amounts were included in the Consolidated Balance Sheet in premiums, accounts and notes receivable and reinsurance recoverables. Premiums from CMS were 22% of consolidated revenues for the six months ended June 30, 2015and 2014.