Aetna 2006 Annual Report Download - page 45

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Consolidated Statements of Income
(Millions, except per common share data) 2006 2005 2004
Revenue:
Health care premiums 19,153.5$ 16,924.7$ 14,862.8$
Other premiums 1,956.0 2,003.0 1,813.9
Fees and other revenue * 2,839.3 2,428.9 2,094.1
Net investment income 1,164.7 1,103.0 1,062.5
Net realized capital gains 32.2 32.3 70.8
Total revenue 25,145.7 22,491.9 19,904.1
Benefits and expenses:
Health care costs ** 15,301.0 13,107.9 11,637.7
Current and future benefits 2,319.0 2,364.5 2,191.5
Operating expenses:
Selling expenses 952.7 843.5 700.0
General and administrative expenses 3,867.9 3,609.2 3,467.7
Total operating expenses 4,820.6 4,452.7 4,167.7
Interest expense 148.3 122.8 104.7
Amortization of other acquired intangible assets 85.6 57.4 42.5
Reduction of reserve for anticipated future losses on discontinued products (115.4) (66.7) -
Total benefits and expenses 22,559.1 20,038.6 18,144.1
Income from continuing operations before income taxes 2,586.6 2,453.3 1,760.0
Income taxes 901.0 880.0 635.2
Income from continuing operations 1,685.6 1,573.3 1,124.8
Discontinued operations, net of tax (Note 21) 16.1 - 1,030.0
Net income 1,701.7$ 1,573.3$ 2,154.8$
Earnings per common share:
Basic:
Income from continuing operations 3.09$ 2.72$ 1.86$
Discontinued operations, net of tax .03 - 1.70
Net income 3.12$ 2.72$ 3.56$
Diluted:
Income from continuing operations 2.96$ 2.60$ 1.79$
Discontinued operations, net of tax .03 - 1.64
Net income 2.99$ 2.60$ 3.43$
For the Years Ended December 31,
* Fees and other revenue includes administrative services contract member co-payment revenue and plan sponsor reimbursements related to
our mail order and specialty pharmacy operations of $38.0 million, $21.3 million and $14.7 million (net of pharmaceutical and processing
costs of $1.4 billion, $884.5 million and $632.7 million) for 2006, 2005 and 2004, respectively.
** Health care costs have been reduced by fully insured member co-payment revenue related to our mail order and specialty pharmacy
operations of $96.2 million, $78.5 million and $59.5 million for 2006, 2005 and 2004, respectively.
Refer to accompanying Notes to Consolidated Financial Statements.
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