Cigna 2013 Annual Report Download - page 134

PART II
ITEM 8. Financial Statements and Supplementary Data
During 2011, the Company repaid $449 million in maturing short-term debt and capital leases was $270 million in 2013,
long-term debt. $268 million in 2012, and $202 million in 2011.
Maturities of debt and capital leases are as follows (in millions): $133 The Company was in compliance with its debt covenants as of
in 2014, $28 in 2015, $618 in 2016, $253 in 2017, $131 in 2018 and December 31, 2013.
the remainder in years after 2018. Interest expense on long-term debt,
Common and Preferred Stock
As of December 31, the Company had issued the following shares:
(Shares in thousands) 2013 2012
Common: Par value $0.25 600,000 shares authorized
Outstanding – January 1 285,829 285,533
Issued for stock option and other benefit plans 3,319 4,695
Repurchase of common stock (13,622) (4,399)
Outstanding – December 31 275,526 285,829
Treasury stock 90,619 80,316
ISSUED – DECEMBER 31 366,145 366,145
On November 16, 2011, the Company issued 15.2 million shares of In 2013 we repurchased 13.6 million shares for $1.0 billion. From
its common stock at $42.75 per share. Proceeds of $650 million January 1, 2014 through February 26, 2014 we repurchased
($629 million net of underwriting discount and fees) were used to 5.0 million shares for $411 million. On February 26, 2014, the
partially fund the HealthSpring acquisition in January 2012. Company’s Board of Directors increased share repurchase authority by
$500 million. Accordingly, the total remaining share repurchase
The Company maintains a share repurchase program that was authorization as of February 26, 2014 was $901 million. The
authorized by its Board of Directors. The decision to repurchase Company repurchased 4.4 million shares for $208 million during
shares depends on market conditions and alternative uses of capital. 2012.
The Company has, and may continue from time to time, to
repurchase shares on the open market through a Rule 10b5-1 plan The Company has authorized a total of 25 million shares of $1 par
that permits a company to repurchase its shares at times when it value preferred stock. No shares of preferred stock were outstanding at
otherwise might be precluded from doing so under insider trading December 31, 2013 or 2012.
laws or because of self-imposed trading blackout periods.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive loss excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and
a portion of deferred acquisition costs associated with the corporate owned life insurance business. As required by GAAP, the Company
parenthetically identifies the income statement line item affected by reclassification adjustments in the table below. Changes in the components of
accumulated other comprehensive loss were as follows:
Tax
2013 (Expense) After-
(In millions) Pre-Tax Benefit Tax
Net unrealized depreciation securities:
Net unrealized depreciation on securities arising during the year $ (498) $ 166 $ (332)
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains) (121) 43 (78)
Net unrealized depreciation, securities $ (619) $ 209 $ (410)
Net unrealized appreciation, derivatives $ 14 $ (5) $ 9
Net translation of foreign currencies $-$13$13
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past experience and prior service costs
(other operating expenses) $ 70 $ (25) $ 45
Reclassification adjustment for curtailment gain (other operating expenses) (19) 7 (12)
Total reclassification adjustment to shareholders’ net income (other operating expenses) 51 (18) 33
Net change due to valuation update and plan amendments 779 (273) 506
Net postretirement benefits liability adjustment $ 830 $ (291) $ 539
102 CIGNA CORPORATION - 2013 Form 10-K
NOTE 16
NOTE 17