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CIGNA CORPORATION2010 Form 10K
92
PART II
ITEM 8 Financial Statements and Supplementary Data
Property and equipment was comprised of the following as of December 31:
(Dollars in millions)
Cost Accumulated
Amortization Net Carrying Value
2010
Internal-use software $ 1,379 $ 875 $ 504
Other property and equipment 1,190 782 408
TOTAL PROPERTY AND EQUIPMENT $ 2,569 $ 1,657 $ 912
2009
Internal-use software $ 1,168 $ 692 $ 476
Other property and equipment 1,194 808 386
TOTAL PROPERTY AND EQUIPMENT $ 2,362 $ 1,500 $ 862
Depreciation and amortization was comprised of the following for the years ended December 31:
(Dollars in millions)
2010 2009 2008
Internal-use software $ 161 $ 147 $ 143
Other property and equipment 99 91 76
Depreciation and amortization of property and equipment 260 238 219
Other intangibles 32 30 25
TOTAL DEPRECIATION AND AMORTIZATION $ 292 $ 268 $ 244
e Company estimates annual pre-tax amortization for intangible
assets, including internal-use software, over the next fi ve calendar years to be as follows: $214 million in 2011, $179 million in 2012,
$139 million in 2013, $84 million in 2014, and $53 million in 2015.
NOTE 10 Pension and Other Postretirement Benefi t Plans
A. Pension and Other Postretirement
Benefi t Plans
e Company and certain of its subsidiaries provide pension, health
care and life insurance defi ned benefi ts to eligible retired employees,
spouses and other eligible dependents through various domestic
and foreign plans.  e eff ect of its foreign pension and other post
retirement benefi t plans is immaterial to the Company’s results of
operations, liquidity and fi nancial position. Eff ective July 1, 2009, the
Company froze its primary domestic defi ned benefi t pension plans.
A curtailment of benefi ts occurred as a result of this action since it
eliminated the accrual of benefi ts for the future service of active
employees enrolled in these domestic pension plans. Accordingly,
the Company recognized a pre-tax curtailment gain of $46 million
($30 million after-tax) in 2009.
e Company measures the assets and liabilities of its domestic pension
and other postretirement benefi t plans as of December 31.  e following
table summarizes the projected benefi t obligations and assets related to the
Company’s domestic and international pension and other postretirement
benefi t plans as of, and for the year ended, December 31:
(In millions)
Pension Bene ts Other Postretirement Bene ts
2010 2009 2010 2009
Change in bene t obligation
Benefi t obligation, January 1 $ 4,363 $ 4,101 $ 419 $ 376
Service cost 2 43 1 1
Interest cost 240 250 22 24
Loss from past experience 379 255 36 59
Benefi ts paid from plan assets (258) (247) (2) (4)
Benefi ts paid - other (35) (30) (32) (37)
Translation of foreign currencies — 1 — —
Amendments — 5 — —
Curtailment — (15) — —
Benefi t obligation, December 31 4,691 4,363 444 419
Change in plan assets
Fair value of plan assets, January 1 2,850 2,248 24 24
Actual return on plan assets 357 436 1 2
Benefi ts paid (258) (247) (2) (2)
Translation of foreign currencies — 1 — —
Contributions 214 412 — —
Fair value of plan assets, December 31 3,163 2,850 23 24
Funded Status $ (1,528) $ (1,513) $ (421) $ (395)