Cigna 2009 Annual Report Download - page 203

FS-7
CIGNA CORPORATION AND SUBSIDIARIES
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION
(REGISTRANT)
NOTES TO CONDENSED FINANCIAL STATEMENTS
The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and
the accompanying notes thereto in the Annual Report.
Note 1—For purposes of these condensed financial statements, CIGNA Corporation’s (the Company) wholly owned and majority
owned subsidiaries are recorded using the equity basis of accounting. Certain reclassifications have been made to prior
years’ amounts to conform to the 2009 presentation.
Note 2—On April 25, 2007, the Company’s Board of Directors approved a three-for-one stock split (in the form of a stock dividend)
of the Company’s common shares. The stock split was effective on June 4, 2007 for shareholders of record as of the close of
business on May 21, 2007.
Note 3—Short-term and long-term debt consisted of the following at December 31:
(In millions) 2009 2008
Short-term:
Commercial Paper $ 100 $ 299
Total short-term debt $ 100 $ 299
Long-term:
Uncollateralized debt:
7% Notes due 2011 $ 222 $ 222
6.375% Notes due 2011 226 226
5.375% Notes due 2017 250 250
6.35% Notes due 2018 300 300
8.5% Notes due 2019 349 -
7.65% Notes due 2023 100 100
8.3% Notes due 2023 17 17
7.875 % Debentures due 2027 300 300
8.3% Step Down Notes due 2033 83 83
6.15% Notes due 2036 500 500
Total long-term debt $ 2,347 $ 1,998
Under a universal shelf registration statement filed with the Securities and Exchange Commission (SEC), the Company
issued $350 million of 8.5% Notes on May 7, 2009 (with an effective interest rate of 9.9% per year). The difference between
the stated and effective interest rates primarily reflects the effect of treasury locks. Interest is payable on May 1 and
November 1 of each year beginning November 1, 2009. These Notes will mature on May 1, 2019.