Cigna 2014 Annual Report Download - page 105
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PART II
ITEM 8. Financial Statements and Supplementary Data
Acquisitions and Dispositions
The Company may from time to time acquire or dispose of assets, supplemental health insurance products in the U.S. for a cash
subsidiaries or lines of business. The three significant transactions purchase price of $326 million. Results of this business and the related
described below were completed in 2012. The combined pro forma goodwill and intangible assets (see Note 8 for additional information)
effect of these transactions was not material to the Company’s 2012 are reported in the Global Supplemental Benefits segment.
consolidated revenue and net income.
C. Acquisition of HealthSpring, Inc.
A. Joint Venture Agreement with
On January 31, 2012 the Company acquired the outstanding shares
Finansbank
of HealthSpring, Inc. (‘‘HealthSpring’’) for $55 per share in cash and
Cigna stock awards, representing a cost of approximately $3.8 billion.
On November 9, 2012, the Company acquired 51% of the total At the time of the acquisition, HealthSpring provided Medicare
shares of Finans Emeklilik ve Hayat A.S. (‘‘Finans Emeklilik’’), a Advantage coverage in 15 states and the District of Columbia, as well
Turkish insurance company for a cash purchase price of approximately as a large, national stand-alone Medicare prescription drug business.
$116 million. Finans Emeklilik operates in life insurance, accident Results of this business and the related goodwill and intangible assets
insurance and pension product markets. Results of this business and (see Note 8 for additional information) are reported in the Global
the related goodwill and intangible assets (see Note 8 for additional Health Care segment. During 2012, the Company recorded
information) are reported in the Global Supplemental Benefits $53 million pre-tax ($40 million after-tax: $7 million in Global
segment. The redeemable noncontrolling interest is classified as Health Care and $33 million in Corporate) of acquisition-related
temporary equity in the Company’s Consolidated Balance Sheet costs in other operating expenses.
because Finansbank has the right to require the Company to purchase
its 49% interest for the value of its net assets and the inforce business During the three years ended December 31, 2014, the Company
in 15 years. entered into other acquisition and divestiture transactions, the results
of which were not material to the Company’s results of operations,
liquidity or financial condition.
B. Acquisition of Great American
Supplemental Benefits Group
On August 31, 2012, the Company acquired Great American
Supplemental Benefits Group, one of the largest providers of
CIGNA CORPORATION - 2014 Form 10-K 73
NOTE 3