Cigna 2011 Annual Report Download - page 159

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FS-7CIGNA CORPORATION2011 Form10K
ITEM 15 Exhibits and Financial Statement Schedules
PART IV
Cigna Corporation and Subsidiaries
Schedule II — Condensed Financial Information of Cigna Corporation (Registrant)
Notes to Condensed Financial Statements
e accompanying condensed nancial statements should be read
in conjunction with the Consolidated Financial Statements and the
accompanying notes thereto in the Annual Report on Form10-K.
Note1—For purposes of these condensed nancial statements, Cigna
Corporation’s (the Company) wholly owned and majority owned
subsidiaries are recorded using the equity basis of accounting. Certain
reclassications have been made to prior years’ amounts to conform
to the 2011 presentation.
Note2—Short-term and long-term debt consisted of the following
at December31:
(In millions)
December31,2011 December31,2010
Short-term:
Commercial Paper $ 100 $ 100
Current maturities of long-term debt - 448
TOTAL SHORTTERM DEBT $ 100 $ 548
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
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 -
TOTAL LONGTERM DEBT $ 4,869 $ 2,180
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 reduce the intercompany payable balance
with Cigna Holdings and ultimately used to fund the HealthSpring
acquisition in 2012.
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