Mergers and Acquisitions

9 Months Ended

Sep. 30, 2017

Acquisitions and Dispositions [Abstract]

Note 3 – Mergers and Acquisitions

Termination of Proposed Merger with Anthem, Inc. (“Anthem”)

On May 12, 2017, Cigna announced that the merger agreement between the Company and Anthem had been terminated. See Note 16(E) for discussion of ongoing litigation related to the termination of the merger agreement.

The following table presents merger-related costs incurred by the Company for the three months and nine months ended September 30, 2017 and 2016. Merger-related costs primarily consist of fees for legal, advisory and other professional services. In addition, because the merger was not consummated, certain merger-related costs that were previously not deductible for federal income tax purposes became deductible. The Company recognized an incremental tax benefit for these newly deductible costs in the second quarter of 2017 as presented below.

	Three Months Ended
	September 30, 2017				September 30, 2016
(In millions)	Before-tax		After-tax		Before-tax		After-tax
Merger-related transaction costs	$	9	$	6	$	49	$	46
Tax (benefit) - previously non-deductible costs		-		-		-		-
Merger-related transaction costs (benefits), net	$	9	$	6	$	49	$	46

	Nine Months Ended
	September 30, 2017				September 30, 2016
(In millions)	Before-tax		After-tax		Before-tax		After-tax
Merger-related transaction costs	$	88	$	67	$	123	$	108
Tax (benefit) - previously non-deductible costs		-		(59)		-		-
Merger-related transaction costs, net	$	88	$	8	$	123	$	108

Acquisitions

The Company completed certain acquisitions during 2017 that were not material to its results of operations, liquidity or financial condition.