Aetna 2006 Annual Report Download - page 67

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10. Other Comprehensive Income (Loss)
Shareholders’ equity included the following activity in accumulated other comprehensive income (loss) (excluding
amounts related to experience-rated contract holders and discontinued products) in 2006, 2005 and 2004.
Minimum Total Other
Foreign Pension and Comprehensive
(Millions) Securities Currency Derivatives OPEB plans Income (Loss)
Balance at December 31, 2003 287.6$ 9.8$ (2.0)$ (703.4)$ (408.0)$
Net unrealized losses on securities ($(40.0) pretax) (26.0) - - - (26.0)
Net foreign currency gains ($2.4 pretax) - 1.5 - - 1.5
Net derivative gains ($1.2 pretax) - - .8 - .8
Pension liability adjustment ($(145.0) pretax) - - - (94.3) (94.3)
Reclassification to earnings ($(23.9) pretax) (15.9) - .4 - (15.5)
Balance at December 31, 2004 245.7 11.3 (.8) (797.7) (541.5)
Net unrealized losses on securities ($(223.9) pretax) (145.5) - - - (145.5)
Net foreign currency gains ($1.1 pretax) - .7 - - .7
Net derivative losses ($(4.0) pretax) - - (2.6) - (2.6)
Pension liability adjustment ($1,127.7 pretax) - - - 733.0 733.0
Reclassification to earnings ($9.6 pretax) 3.9 - 2.3 - 6.2
Balance at December 31, 2005 104.1 12.0 (1.1) (64.7) 50.3
Net unrealized losses on securities ($(53.7) pretax) (34.9) - - - (34.9)
Net foreign currency losses ($(.6) pretax) - (.4) - - (.4)
Net derivative gains ($24.9 pretax) - - 16.2 - 16.2
Pension liability adjustment ($8.8 pretax) - - - 5.7
(1)
5.7
Reclassification to earnings ($(15.7) pretax) (2.7) - (7.5) - (10.2)
Adjustment to initially recognize the funded status
of pension and OPEB plans - - - (652.4)
(2)
(652.4)
Balance at December 31, 2006 66.5$ 11.6$ 7.6$ (711.4)$ (625.7)$
Net Unrealized Gains (Losses)
(1) The amount recognized reflects the $8.8 million pretax charge to record the minimum pension liability adjustment of the pension
plan in accordance with the provisions of FAS 87, “Employers’ Accounting for Pensions” (“FAS 87”), prior to the adoption of
FAS 158.
(2) The amount recognized reflects the $943.5 million pretax and $60.2 million pretax adjustment to reflect the funded status of the
pension and OPEB plans, respectively, in accordance with FAS 158 (refer to Note 2 beginning on page 48 for additional
information on FAS 158).
11. Income Taxes
The components of our income tax provision (benefit) in 2006, 2005 and 2004 were as follows:
(Millions) 2006 2005 2004
Current taxes:
Federal 798.1$ 645.0$ 413.2$
State 50.8 52.1 39.5
Total current taxes 848.9 697.1 452.7
Deferred taxes (benefits):
Federal 50.5 184.0 195.1
State 1.6 (1.1) (12.6)
Total deferred income taxes 52.1 182.9 182.5
Total income taxes 901.0$ 880.0$ 635.2$
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