Aetna 2014 Annual Report Download - page 138

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Annual Report- Page 132
minimum medical loss ratios, delegated arrangements, rescission of insurance coverage, limited benefit health
products, student health products, pharmacy benefit management practices (including the use of narrow networks
and the placement of drugs in formulary tiers), sales practices, and claim payment practices (including payments to
out-of-network providers and payments on life insurance policies).
As a leading national health and related benefits company, we regularly are the subject of government actions of the
types described above. These government actions may prevent or delay us from implementing planned premium
rate increases and may result, and have resulted, in restrictions on our business, changes to or clarifications of our
business practices, retroactive adjustments to premiums, refunds or other payments to members, beneficiaries, states
or the federal government, withholding of premium payments to us by government agencies, assessments of
damages, civil or criminal fines or penalties, or other sanctions, including the possible suspension or loss of
licensure and/or suspension or exclusion from participation in government programs.
Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other
legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the
matters involve indeterminate claims for monetary damages, may involve fines, penalties or punitive damages that
are discretionary in amount, involve a large number of claimants or regulatory authorities, represent a change in
regulatory policy, present novel legal theories, are in the early stages of the proceedings, are subject to appeal or
could result in a change in business practices. In addition, because most legal proceedings are resolved over long
periods of time, potential losses are subject to change due to, among other things, new developments, changes in
litigation strategy, the outcome of intermediate procedural and substantive rulings and other parties’ settlement
posture and their evaluation of the strength or weakness of their case against us. Except as specifically noted above
under “Other Litigation and Regulatory Proceedings,” we are currently unable to predict the ultimate outcome of, or
reasonably estimate the losses or a range of losses resulting from, 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 $177 million, $170 million and $142 million in 2014, 2013 and 2012, respectively. The future net
minimum payments under non-cancelable leases for 2015 through 2019 are estimated to be $139 million, $103
million, $74 million, $56 million and $39 million, respectively.
We also have funding obligations relating to equity limited partnership investments and real estate partnerships.
The funding requirements for equity limited partnership investments and real estate partnerships for 2015 through
2019 are estimated to be $132 million, $87 million, $55 million, $33 million and $22 million, respectively.
19. Segment Information
Our operations are conducted in three business segments: Health Care, Group Insurance and Large Case Pensions.
The acquired Coventry operations are reflected in our Health Care segment on and after May 7, 2013. Our
Corporate Financing segment is not a business segment; it is added to our business segments to reconcile to our
consolidated results. The Corporate Financing segment includes interest expense on our outstanding debt and the
financing components of our pension and OPEB plan expense (the service cost and prior service cost components
of this expense are allocated to our business segments). Non-GAAP financial measures we disclose, such as
operating earnings, should not be considered a substitute for, or superior to, financial measures determined or
calculated in accordance with GAAP.