Cigna 2010 Annual Report Download - page 57

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CIGNA CORPORATION2010 Form 10K 37
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cost reduction activity for 2008, 2009 and 2010 was as follows:
(In millions)
Severance Real Estate Total
Fourth Quarter 2008 charge (balance carried to January 1, 2009) $ 44 $ 11 $ 55
Second Quarter 14 - 14
ird Quarter 10 - 10
Fourth Quarter 20 - 20
Subtotal — 2009 charges 44 - 44
Less: Payments 55 3 58
Balance, December 31, 2009 33 8 41
Add: change in estimate to severance accrual 6 - 6
Less: 2010 Payments
First Quarter 10 1 11
Second Quarter 8513
ird Quarter 718
Fourth Quarter 516
Balance, December 31, 2010 $ 9 $ - $ 9
e Health Care segment reported substantially all of the 2010
charge, $37 million pre-tax ($24 million after-tax) of the 2009
charges and $44 million pre-tax ($27 million after-tax) of the 2008
charge.  e remainder of the 2009 and 2008 charges were reported as
follows: Disability and Life: $5 million pre-tax ($4 million after-tax)
in 2009 and $3 million pre-tax ($2 million after-tax) in 2008; and
International: $2 million pre-tax ($1 million after-tax) in 2009 and
$8 million pre-tax ($6 million after-tax) in 2008.
e Company expects annualized after-tax savings from this cost
reduction program to be approximately $130 million in 2011 and
beyond. A portion of the savings was realized in 2009 while most was
realized in 2010.