Aetna 2006 Annual Report Download - page 84

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processing, information privacy, delegated arrangements and claim payment practices. As a leading national
managed care organization, we regularly are the subject of such reviews. These reviews may result, and have
resulted, in changes to or clarifications of our business practices, as well as fines, penalties or other sanctions.
We are unable to predict at this time the ultimate outcome of the remaining Provider Cases, the insurance industry
brokerage practices matters or other litigation and regulatory proceedings, and it is reasonably possible that their
outcome could be material to us.
Other Obligations
We have operating leases for office space and certain computer and other equipment. Rental expenses for these
items were $146 million, $156 million and $174 million in 2006, 2005 and 2004, respectively. The future net
minimum payments under noncancelable leases for 2007 through 2011 are estimated to be $164 million, $136
million, $108 million, $75 million and $32 million, respectively.
We also have funding obligations relating to equity limited partnership investments and commercial mortgage
loans. The funding requirements for equity limited partnership investments and commercial mortgage loans for
2007 through 2011 are estimated to be $149 million, $66 million, $53 million, $41 million and $29 million,
respectively.
19. Segment Information
Summarized financial information for our principal operations in 2006, 2005 and 2004 were as follows:
Health Group Large Case Corporate Total
(Millions) Care Insurance Pensions Interest Company
2006
Revenue from external customers
(1)
21,897.2$ 1,846.5$ 205.1$ -$ 23,948.8$
Net investment income 334.2 294.1 536.4 - 1,164.7
Interest expense - - - 148.3 148.3
Depreciation and amortization expense 256.9 13.5 - - 270.4
Income taxes (benefits) 847.6 48.6 56.7 (51.9) 901.0
Operating earnings (loss)
(2)
1,572.7 132.7 38.9 (96.4) 1,647.9
Segment assets
(3)
15,904.5 5,327.4 26,394.5 - 47,626.4
2005
Revenue from external customers
(1)
19,310.5$ 1,835.3$ 210.8$ -$ 21,356.6$
Net investment income 295.0 293.1 514.9 - 1,103.0
Interest expense - - - 122.8 122.8
Depreciation and amortization expense 204.4 - - - 204.4
Income taxes (benefits) 827.9 51.0 44.1 (43.0) 880.0
Operating earnings (loss)
(2)
1,427.7 127.7 33.2 (79.8) 1,508.8
Segment assets
(3)
15,476.7 5,720.8 23,235.8 - 44,433.3
2004
Revenue from external customers
(1)
16,914.4$ 1,655.5$ 200.9$ -$ 18,770.8$
Net investment income 262.1 274.1 526.3 - 1,062.5
Interest expense - - - 104.7 104.7
Depreciation and amortization expense 182.2 - - - 182.2
Income taxes (benefits) 592.6 58.0 21.3 (36.7) 635.2
Operating earnings (loss)
(2)
992.3 123.3 31.3 (68.0) 1,078.9
Segment assets
(3)
14,762.3 5,325.4 22,126.4 - 42,214.1
(1) Revenue from the federal government was ten percent or more of our total revenue from external customers in 2006, 2005 and 2004.
We earned $3.0 billion, $2.1 billion and $1.9 billion of revenue from this customer in 2006, 2005 and 2004, respectively, in the
Health Care and Group Insurance segments.
(2) Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation below.
(3) Large Case Pensions assets include $4.8 billion, $5.1 billion and $5.4 billion attributable to discontinued products at December 31,
2006, 2005 and 2004, respectively (excluding the receivable from Large Case Pensions’ continuing products which is eliminated in
consolidation).
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