Humana 2015 Annual Report Download - page 48

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40
ITEM 6. SELECTED FINANCIAL DATA
2015 (a) 2014 (b) 2013 (c) 2012 (d) 2011
(dollars in millions, except per common share results)
Summary of Operating Results:
Revenues:
Premiums $ 52,409 $ 45,959 $ 38,829 $ 37,009 $ 35,106
Services 1,406 2,164 2,109 1,726 1,360
Investment income 474 377 375 391 366
Total revenues 54,289 48,500 41,313 39,126 36,832
Operating expenses:
Benefits 44,269 38,166 32,564 30,985 28,823
Operating costs 7,318 7,639 6,355 5,830 5,395
Depreciation and amortization 355 333 333 295 270
Total operating expenses 51,942 46,138 39,252 37,110 34,488
Income from operations 2,347 2,362 2,061 2,016 2,344
Interest expense 186 192 140 105 109
Gain on sale of business 270 — — — —
Income before income taxes 2,431 2,170 1,921 1,911 2,235
Provision for income taxes 1,155 1,023 690 689 816
Net income $ 1,276 $ 1,147 $ 1,231 $ 1,222 $ 1,419
Basic earnings per common share $ 8.54 $ 7.44 $ 7.81 $ 7.56 $ 8.58
Diluted earnings per common share $ 8.44 $ 7.36 $ 7.73 $ 7.47 $ 8.46
Dividends declared per
common share $ 1.15 $ 1.11 $ 1.07 $ 1.03 $ 0.75
Financial Position:
Cash and investments $ 11,681 $ 11,482 $ 10,938 $ 11,153 $ 10,830
Total assets 24,705 23,527 20,735 19,979 17,708
Benefits payable 4,976 4,475 3,893 3,779 3,754
Debt 3,821 3,825 2,600 2,611 1,659
Stockholders’ equity 10,346 9,646 9,316 8,847 8,063
Cash flows from operations $ 868 $ 1,618 $ 1,716 $ 1,923 $ 2,079
Key Financial Indicators:
Benefit ratio 84.5% 83.0% 83.9% 83.7% 82.1%
Operating cost ratio 13.6% 15.9% 15.5% 15.1% 14.8%
Membership by Segment:
Retail segment:
Medical membership 9,226,800 8,376,500 6,459,300 5,956,700 5,117,400
Specialty membership 1,153,100 1,165,800 1,042,500 948,700 782,500
Group segment:
Medical membership 4,963,400 5,430,200 5,501,600 5,573,400 5,500,600
Specialty membership 6,068,700 6,502,700 6,780,800 7,136,200 6,532,600
Other Businesses:
Medical membership 32,600 35,000 23,400 558,700 566,600
Consolidated:
Total medical membership 14,222,800 13,841,700 11,984,300 12,088,800 11,184,600
Total specialty membership 7,221,800 7,668,500 7,823,300 8,084,900 7,315,100
(a) Includes a gain on the sale of Concentra Inc., net of transaction costs, of $270 million ($238 million after tax, or $1.57 per diluted common
share). Also includes benefits expense of $176 million ($112 million after tax, or $0.74 per diluted common share) for a provision for probable
future losses (premium deficiency) for individual commercial medical business compliant with the Health Care Reform Law for the 2016
coverage year.
(b) Includes loss on extinguishment of debt of $37 million ($23 million after tax, or $0.15 per diluted common share) for the redemption of
senior notes.
(c) Includes benefits expense of $243 million ($154 million after tax, or $0.99 per diluted common share) for reserve strengthening associated
with our non-strategic closed block of long-term care insurance policies.
(d) Includes the acquired operations of Arcadian Management Services, Inc. from March 31, 2012, SeniorBridge Family Companies, Inc. from
July 6, 2012, and Metropolitan Health Networks, Inc. from December 21, 2012.