Aetna 2003 Annual Report Download - page 31

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29
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31,
(Millions, except per common share data) 2003 2002 2001
Revenue:
Health care premiums $13,235.5 $15,036.1 $19,940.4
Other premiums 1,668.5 1,676.6 1,831.6
Administrative services contract fees 1,884.7 1,842.6 1,835.2
Net investment income 1,095.0 1,250.7 1,411.6
Other income 27.5 38.4 75.9
Net realized capital gains 65.2 34.3 96.1
Total revenue 17,976.4 19,878.7 25,190.8
Benefits and expenses:
Health care costs 10,135.8 12,452.8 17,938.8
Current and future benefits 2,090.8 2,245.5 2,458.3
Operating expenses:
Salaries and related benefits 2,179.1 2,245.2 2,290.4
Other 1,975.4 1,987.4 2,224.6
Interest expense 102.9 119.5 142.8
Amortization of goodwill – – 198.1
Amortization of other acquired intangible assets 50.8 130.8 218.5
Severance and facilities charges – 161.0 192.5
Reductions of reserve for anticipated future losses
on discontinued products – (8.3) (94.5)
Total benefits and expenses 16,534.8 19,333.9 25,569.5
Income (loss) from continuing operations before income taxes (benefits) 1,441.6 544.8 (378.7)
Income taxes (benefits):
Current 397.0 193.8 (13.6)
Deferred 110.8 (42.2) (73.6)
Total income taxes (benefits) 507.8 151.6 (87.2)
Income (loss) from continuing operations 933.8 393.2 (291.5)
Discontinued operations, net of tax – 50.0 11.4
Income (loss) before cumulative effect adjustments 933.8 443.2 (280.1)
Cumulative effect adjustments, net of tax – (2,965.7) .5
Net income (loss) $ 933.8 $ (2,522.5) $ (279.6)
Earnings (loss) per common share:
Basic:
Income (loss) from continuing operations $ 6.12 $ 2.64 $ (2.03)
Income from discontinued operations, net of tax – .34 .08
Income (loss) before cumulative effect adjustments 6.12 2.98 (1.95)
Cumulative effect adjustments, net of tax – (19.92) –
Net income (loss) $ 6.12 $ (16.94) $ (1.95)
Diluted:1
Income (loss) from continuing operations $ 5.91 $ 2.57 $ (2.03)
Income from discontinued operations, net of tax – .33 .08
Income (loss) before cumulative effect adjustments 5.91 2.90 (1.95)
Cumulative effect adjustments, net of tax – (19.39) –
Net income (loss) $ 5.91 $ (16.49) $ (1.95)
1 Since the company reported a loss from continuing operations in 2001, the effect of common stock equivalents has
been excluded from per common share computations for 2001 since including such securities would be anti-dilutive.
As a result, diluted and basic per common share amounts for 2001 are the same.
The foregoing financial information should be read in conjunction with the financial statements and related notes as presented in
Aetna Inc.’s 2003 Annual Report, Financial Report.