Aetna 2004 Annual Report Download - page 20

37
CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31,
(Millions, except per common share data) 2004 2003 2002
Revenue:
Health care premiums $14,862.8 $13,235.5 $15,036.1
Other premiums 1,813.9 1,668.5 1,676.6
Administrative services contract fees 2,054.9 1,884.7 1,842.6
Net investment income 1,062.5 1,095.0 1,250.7
Other income 39.2 27.5 38.4
Net realized capital gains 70.8 65.2 34.3
Total revenue 19,904.1 17,976.4 19,878.7
Benefits and expenses:
Health care costs 11,637.7 10,135.8 12,452.8
Current and future benefits 2,191.5 2,090.8 2,245.5
Operating expenses:
Selling expenses 700.0 567.4 615.3
General and administrative expenses 3,328.8 3,587.1 3,617.3
Interest expense 104.7 102.9 119.5
Amortization of other acquired intangible assets 42.5 50.8 130.8
Severance and facilities charges – – 161.0
Reduction of reserve for anticipated future losses
on discontinued products – – (8.3)
Total benefits and expenses 18,005.2 16,534.8 19,333.9
Income from continuing operations before income taxes (benefits) 1,898.9 1,441.6 544.8
Income taxes (benefits):
Current 490.2 397.0 193.8
Deferred 193.6 110.8 (42.2)
Total income taxes 683.8 507.8 151.6
Income from continuing operations 1,215.1 933.8 393.2
Discontinued operations, net of tax 1,030.0 – 50.0
Income before cumulative effect adjustments 2,245.1 933.8 443.2
Cumulative effect adjustments, net of tax – – (2,965.7)
Net income (loss) $ 2,245.1 $ 933.8 $ (2,522.5)
Earnings (loss) per common share:
Basic:
Income from continuing operations $ 8.03 $ 6.12 $ 2.64
Income from discontinued operations, net of tax 6.80 – .34
Income before cumulative effect adjustments 14.83 6.12 2.98
Cumulative effect adjustments, net of tax – – (19.92)
Net income (loss) $ 14.83 $ 6.12 $ (16.94)
Diluted:
Income from continuing operations $ 7.74 $ 5.91 $ 2.57
Income from discontinued operations, net of tax 6.56 – .33
Income before cumulative effect adjustments 14.30 5.91 2.90
Cumulative effect adjustments, net of tax – – (19.39)
Net income (loss) $ 14.30 $ 5.91 $ (16.49)
The foregoing financial information should be read in conjunction with the financial statements and related notes as presented in Aetna Inc.’s
2004 Annual Report, Financial Report to Shareholders.
36
37 CONSOLIDATED
STATEMENTS OF INCOME
38 CONSOLIDATED
BALANCE SHEETS
39 CONSOLIDATED
STATEMENTS OF
CASH FLOWS
40 BOARD OF DIRECTORS
41 MANAGEMENT
42 SHAREHOLDER
INFORMATION
44 INFORMATION ABOUT
THE ESSAYISTS
FINANCIAL AND
CORPORATE
INFORMATION