Cigna 2011 Annual Report Download - page 130

108 CIGNA CORPORATION2011 Form10K
PART II
ITEM 8 Financial Statements and Supplementary Data
Realized investment gains and (losses) that are not reected in the Company’s revenues for the years ended December31 were as follows:
(In millions) 2011 2010 2009
Separate accounts $ 210 $ 191 $ (25)
Investment gains required to adjust future policy benets for the run-o settlement annuity business $ 8 $ 18 $ 51
Sales information for available-for-sale xed maturities and equity securities, for the years ended December31 were as follows:
(In millions) 2011 2010 2009
Proceeds from sales $ 876 $ 826 $ 949
Gross gains on sales $ 53 $ 46 $ 51
Gross losses on sales $ (7) $ (3) $ (9)
NOTE 15 Debt
(In millions) 2011 2010
Short-term:
Commercial paper $ 100 $ 100
Current maturities of long-term debt 4 452
TOTAL SHORTTERM DEBT $ 104 $ 552
Long-term:
Uncollateralized debt:
2.75% Notesdue 2016 $ 600 $ -
5.375% Notesdue 2017 250 250
6.35% Notesdue 2018 131 131
8.5% Notesdue 2019 251 251
4.375% Notesdue 2020 249 249
5.125% Notesdue 2020 299 299
6.37% Notesdue 2021 78 78
4.5% Notesdue 2021 298 -
4% Notesdue 2022 743 -
7.65% Notesdue 2023 100 100
8.3% Notesdue 2023 17 17
7.875% Debentures due 2027 300 300
8.3% Step Down Notesdue 2033 83 83
6.15% Notesdue 2036 500 500
5.875% Notesdue 2041 298 -
5.375% Notesdue 2042 750 -
Other 43 30
TOTAL LONGTERM DEBT $ 4,990 $ 2,288
On November10,2011, the Company issued $2.1billion of long-term
debt as follows: $600million of 5-Year Notesdue November15,2016
at a stated interest rate of 2.75% ($600million, net of discount,
with an eective interest rate of 2.936% per year), $750million of
10-Year Notesdue February15,2022 at a stated interest rate of 4%
($743million, net of discount, with an eective interest rate of 4.346%
per year) and $750million of 30-Year Notesdue February15,2042
at a stated interest rate of 5.375% ($750million, net of discount,
with an eective interest rate of 5.542% per year). Interest is payable
on May15 and November15 of each year beginning May15,2012
for the 5-Year Notesand February15 and August15 of each year
beginning February15,2012 for the 10-Year and 30-Year Notes. e
proceeds of this debt were used to fund the HealthSpring acquisition
in January2012.
e Company may redeem these Notes, at any time, in whole or in
part, at a redemption price equal to the greater of:
•100% of the principal amount of the Notesto be redeemed; or
• the present value of the remaining principal and interest payments
on the Notesbeing redeemed discounted at the applicable Treasury
Rate plus 30 basis points (5-Year 2.75% Notesdue 2016), 35 basis
points (10-Year 4% Notesdue 2022), or 40 basis points (30-Year
5.375% Notesdue 2042).
In June2011, the Company entered into a new ve-year revolving
credit and letter of credit agreement for $1.5billion, which permits
up to $500million to be used for letters of credit. is agreement is
diversied among 16 banks, with 3 banks each having 12% of the
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