Aetna 2015 Annual Report Download - page 137

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Annual Report- Page 131
Valuation allowances are provided when we estimate that it is more likely than not that deferred tax assets will not
be realized. A valuation allowance has been established primarily related to state net operating losses. We base our
estimates of the future realization of deferred tax assets primarily on historic taxable income and existing deferred
tax liabilities.
We participate in the Compliance Assurance Process (the “CAP”) with the Internal Revenue Service (the “IRS”).
Under the CAP, the IRS undertakes audit procedures during the tax year and as the return is prepared for filing.
The IRS has concluded its CAP audit of our 2014 tax return as well as all the prior years. We expect the IRS will
conclude its CAP audit of our 2015 tax return in 2016.
We are also subject to audits by state taxing authorities for tax years from 2000 through 2014. We believe we carry
appropriate reserves for any exposure to state tax issues.
At both December 31, 2015 and December 31, 2014 we did not have material uncertain tax positions reflected in
our consolidated balance sheets.
We paid net income taxes of approximately $1.8 billion, $1.6 billion and $891 million in 2015, 2014 and 2013,
respectively.
15. Debt
The carrying value of our long-term debt at December 31, 2015 and 2014 was as follows:
(Millions) 2015 2014
Senior notes, 6.125%, due 2015 (1) $ — $ 229.3
Senior notes, 5.95%, due 2017 402.4 418.3
Senior notes, 1.75%, due 2017 249.6 249.2
Senior notes, 1.5%, due 2017 499.1 498.6
Senior notes, 2.2%, due 2019 374.8 374.7
Senior notes, 3.95%, due 2020 746.0 745.2
Senior notes, 5.45%, due 2021 674.9 688.6
Senior notes, 4.125%, due 2021 496.2 495.5
Senior notes, 2.75%, due 2022 988.4 986.8
Senior notes, 3.5%, due 2024 747.2 746.9
Senior notes, 6.625%, due 2036 769.9 769.8
Senior notes, 6.75%, due 2037 530.8 530.7
Senior notes, 4.5%, due 2042 481.4 480.8
Senior notes, 4.125%, due 2042 493.1 492.8
Senior notes, 4.75%, due 2044 374.2 374.1
Total long-term debt 7,828.0 8,081.3
Less current portion of long-term debt —229.3
Total long-term debt, less current portion $ 7,828.0 $ 7,852.0
(1) The 6.125% senior notes were repaid in January 2015. These notes were classified as current in the consolidated balance sheet at
December 31, 2014.
At December 31, 2015, we did not have any commercial paper outstanding. At December 31, 2014, we had $500
million of commercial paper outstanding with a weighted-average interest rate of .30%.
We paid $338 million, $379 million and $364 million in interest in 2015, 2014 and 2013, respectively.
We are a member of the FHLBB, and as a member we have the ability to obtain cash advances, subject to certain
minimum collateral requirements. Our maximum borrowing capacity available from the FHLBB at December 31,