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PART II
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Critical Accounting Estimates
The preparation of Consolidated Financial Statements in accordance Consolidated Financial Statements, including estimates of liabilities
with GAAP requires management to make estimates and assumptions for future policy benefits, as well as estimates with respect to unpaid
that affect reported amounts and related disclosures in the claims and claim expenses, postemployment and postretirement
Consolidated Financial Statements. Management considers an benefits other than pensions, certain compensation accruals, and
accounting estimate to be critical if: income taxes.
it requires assumptions to be made that were uncertain at the time Management believes the current assumptions used to estimate
the estimate was made; and amounts reflected in our Consolidated Financial Statements are
appropriate. However, if actual experience differs from the
changes in the estimate or different estimates that could have been assumptions used in estimating amounts reflected in our
selected could have a material effect on our consolidated results of Consolidated Financial Statements, the resulting changes could have a
operations or financial condition. material adverse effect on our consolidated results of operations and,
in certain situations, could have a material adverse effect on our
Management has discussed the development and selection of its
liquidity and financial condition.
critical accounting estimates with the Audit Committee of our Board
of Directors and the Audit Committee has reviewed the disclosures See Note 2 to the Consolidated Financial Statements for further
presented below. information on significant accounting policies.
In addition to the estimates presented in the following table, there are
other accounting estimates used in the preparation of our
42 CIGNA CORPORATION - 2014 Form 10-K
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