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Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Information [Abstract]  
Segment Information [Text Block]

Note 17 ― Segment Information

See Note 1 for a description of the Company’s reporting segments.

In the Company’s segment disclosures, we present “operating revenues,” defined as total revenues excluding realized investment results. The Company excludes realized investment results from this measure because its portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of the past or future underlying performance of the business.

The Company uses “adjusted income (loss) from operations” as its principal financial measure of segment operating performance because management believes it best reflects the underlying results of business operations and permits analysis of trends in underlying revenue, expenses and profitability. Adjusted income from operations is defined as shareholders’ net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items. Income or expense amounts are excluded from adjusted income from operations for the following reasons:

  • Realized investment results are excluded because, as noted above, the Company’s portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.
  • Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of the Company’s business operations.
  • Special items, if any, are excluded because management believes they are not representative of the underlying results of operations. This is generally because the nature and size of these matters are not indicative of our ongoing business operations. Further context about these items is provided in the footnotes listed in the table below.

Three Months Ended Three Months Ended
June 30, 2017June 30, 2016
(In millions)Before-taxAfter-taxBefore-taxAfter-tax
Merger-related transaction costs (benefits) - see Note 3$16$(47)$34$26
Six Months Ended Six Months Ended
June 30, 2017June 30, 2016
Before-taxAfter-taxBefore-taxAfter-tax
Long-term care guaranty fund assessment - see Note 16(D)$129$83$-$-
Merger-related transaction costs - see Note 37927462
Total impact from special items$208$85$74$62

Summarized segment financial information was as follows:

(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
Three Months Ended June 30, 2017
Premiums, fees and other revenues and mail order pharmacy revenues$7,993$924$1,023$30$(11)$9,959
Net investment income923189888308
Operating revenues$8,085$955$1,112$118$(3)$10,267
Total revenues$8,117$954$1,134$116$(3)$10,318
Shareholders' net income (loss)$599$101$97$17$(1)$813
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains) losses(22)-(14)2-(34)
Amortization of other acquired intangible assets, net144---18
Special item:
Merger-related transaction (benefits)----(47)(47)
Adjusted income (loss) from operations$591$105$83$19$(48)$750
Three Months Ended June 30, 2016
Premiums, fees and other revenues and mail order pharmacy revenues$7,759$808$1,010$28$(6)$9,599
Net investment income812788935294
Operating revenues$7,840$835$1,098$121$(1)$9,893
Total revenues$7,868$835$1,122$136$(1)$9,960
Shareholders' net income (loss)$487$78$3$30$(88)$510
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains)(19)-(15)(10)-(44)
Amortization of other acquired intangible assets, net185---23
Special item:
Merger-related transaction costs----2626
Adjusted income (loss) from operations$486$83$(12)$20$(62)$515

(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
Six Months Ended June 30, 2017
Premiums, fees and other revenues and mail order pharmacy revenues$16,099$1,805$2,055$60$(24)$19,995
Net investment income1845917817416611
Operating revenues$16,283$1,864$2,233$234$(8)$20,606
Total revenues$16,341$1,876$2,263$231$(8)$20,703
Shareholders' net income (loss)$1,143$178$156$37$(103)$1,411
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains) losses(38)(9)(20)2-(65)
Amortization of other acquired intangible assets, net2810---38
Special items:
Long-term care guaranty fund assessment68-15--83
Merger-related transaction costs----22
Adjusted income (loss) from operations$1,201$179$151$39$(101)$1,469
Six Months Ended June 30, 2016
Premiums, fees and other revenues and mail order pharmacy revenues$15,571$1,588$2,039$55$(10)$19,243
Net investment income153531681839566
Operating revenues$15,724$1,641$2,207$238$(1)$19,809
Total revenues$15,735$1,639$2,228$243$(1)$19,844
Shareholders' net income (loss)$1,001$137$16$44$(169)$1,029
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains) losses(7)1(13)(4)-(23)
Amortization of other acquired intangible assets, net3612---48
Special item:
Merger-related transaction costs----6262
Adjusted income (loss) from operations$1,030$150$3$40$(107)$1,116

The Company had net receivables from CMS of $0.5 billion as of June 30, 2017 and $0.6 billion as of December 31, 2016. These amounts were included in the Consolidated Balance Sheets in premiums, accounts and notes receivable and reinsurance recoverables. Premiums from CMS were 17% of consolidated revenues for the six months ended June 30, 2017 and 21% for the six months ended June 30, 2016. These amounts were reported in the Global Health Care segment.