Aetna 2008 Annual Report Download - page 84

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management, complaint and grievance processing, information privacy, provider network structure (including the
use of performance-based networks), delegated arrangements, pharmacy benefit management practices and claim
payment practices (including payments to out-of-network providers). As a leading national health care benefits
organization, we regularly are the subject of such reviews. These reviews may result, and have resulted, in changes
to or clarifications of our business practices, as well as fines, penalties or other sanctions.
We are unable to predict at this time the ultimate outcome of the matters described above, and it is reasonably
possible that their outcome could be material to us.
Other Obligations
We have operating leases for office space and certain computer and other equipment. Rental expenses for these
items were $176 million, $153 million and $146 million in 2008, 2007 and 2006, respectively. The future net
minimum payments under noncancelable leases for 2009 through 2013 are estimated to be $164 million, $140
million, $85 million, $55 million and $36 million, respectively.
We also have funding obligations relating to equity limited partnership investments and commercial mortgage loans.
The funding requirements for equity limited partnership investments and commercial mortgage loans for 2009
through 2013 are estimated to be $92 million, $55 million, $48 million, $29 million and $20 million, respectively.
19. Segment Information
Summarized financial information of our segment operations in 2008, 2007 and 2006 were as follows:
Health Group Large Case Corp orate Total
(Millions) Care Insurance Pensions Interest Company
2008
Revenue from external customers (1) 28,709.9$ 1,781.5$ 205.2$ -$ 30,696.6$
Net investment income 341.3 240.4 328.3 - 910.0
Interest expense - - - 236.4 236.4
Depreciation and amortization expense 371.4 6.9 - - 378.3
Income taxes (benefits) 924.5 (53.0) 1.3 (82.7) 790.1
Operating earnings (loss) (2) 1,895.4 140.0 39.2 (153.7) 1,920.9
Segment assets 18,754.5 4,435.0 12,663.0 - 35,852.5
2007
Revenue from external customers (1) 24,431.4$ 1,875.1$ 216.9$ -$ 26,523.4$
Net investment income 370.9 303.0 476.0 - 1,149.9
Interest expense - - - 180.6 180.6
Depreciation and amortization expense 314.6 6.9 - - 321.5
Income taxes (benefits) 959.2 36.8 32.6 (63.2) 965.4
Operating earnings (loss) (2) 1,770.9 145.
5
38.1
(
117.4
)
1,837.1
Segment assets 18,223.4 5,469.7 27,031.6 - 50,724.7
2006
Revenue from external customers (1) 21,897.2$ 1,846.5$ 205.1$ -$ 23,948.8$
Net investment income 334.2 294.1 536.4 - 1,164.7
Interest expense - - - 148.3 148.3
Depreciation and amortization expense 256.9 13.5 - - 270.4
Income taxes (benefits) 847.6 48.6 56.7 (51.9) 901.0
Operating earnings (loss) (2) 1,572.7 132.7 38.9 (96.4) 1,647.9
Segment assets 15,904.5 5,327.4 26,394.5 - 47,626.4
(1) Revenue from the federal government was ten percent or more of our total revenue from external customers in 2008, 2007 and 2006.
We earned $6.2 billion, $3.8 billion and $3.0 billion of revenue from this customer in 2008, 2007 and 2006, respectively, in the
Health Care and Group Insurance segments.
(2) Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation on page 80.
Annual Report - Page 79