Aetna 2006 Annual Report Download - page 90

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At December 31, 2006, scheduled contract maturities, future benefit payments and other expected payments, including
future interest, were as follows:
(Millions)
2007 484.5$
2008 475.1
2009 461.2
2010 444.4
2011 430.0
2012-2016 1,918.4
2017-2021 1,498.7
2022-2026 1,100.8
2027-2031 765.6
Thereafter 1,043.6
The liability expected at December 31, 1993 and actual liability balances at December 31, 2006, 2005 and 2004 for
the GIC and SPA liabilities were as follows:
(Millions) GIC SPA GIC SPA
2004 31.8$ 3,849.1$ 24.0$ 4,065.6$
2005 30.0 3,708.6 23.5 3,908.4
2006 28.2 3,563.8 23.4 3,771.1
Expected Actual
The GIC balances were lower than expected in each period because several contract holders redeemed their
contracts prior to contract maturity. The SPA balances in each period were higher than expected because of
additional amounts received under existing contracts.
Distributions on discontinued products in 2006, 2005 and 2004 were as follows:
(Millions) 2006 2005 2004
Scheduled contract maturities, settlements and benefit payments 481.0$ 492.2$ 515.6$
Participant-directed withdrawals .4 .2 .3
Cash required to fund these distributions was provided by earnings and scheduled payments on, and sales of, invested
assets.
21. Discontinued Operations
On July 8, 2004, we were notified that the Congressional Joint Committee on Taxation approved a tax refund of
approximately $740 million, including interest, relating to businesses that were sold in the 1990s by our former
parent company. Also in 2004, we filed for, and were approved for, an additional $35 million tax refund related to
other businesses that were sold by our former parent company. The tax refunds were recorded as income from
discontinued operations in 2004. The Joint Committee approval also finalizes the IRS’ s audits of our tax returns for
the years 1991 through 2001. In 2004, we also finalized the IRS’ s audits of our tax returns for the years 1984
through 1990. As a result of the resolution of these audits, we recorded favorable adjustments of approximately
$255 million to existing tax liabilities in 2004 as income from discontinued operations, for a total of $1.03 billion of
income. We received approximately $666 million of the tax refunds during 2004 and $69 million in 2005. We
received the final approximately $50 million payment of these refunds in 2006, which resulted in an additional $16
million of income from discontinued operations in 2006.
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