Cigna 2014 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2014 Cigna annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 182

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182

PART II
ITEM 8. Financial Statements and Supplementary Data
Other intangible assets were comprised of the following at December 31:
Accumulated Net Carrying
(Dollars in millions)
Cost Amortization Value
2014
Customer relationships $ 1,266 $ 779 $ 487
Other 313 91 222
Total reported in other assets, including other intangibles 1,579 870 709
Value of business acquired (reported in deferred policy acquisition costs) 165 30 135
Internal-use software (reported in property and equipment) 2,191 1,467 724
TOTAL OTHER INTANGIBLE ASSETS $ 3,935 $ 2,367 $ 1,568
2013
Customer relationships $ 1,289 $ 635 $ 654
Other 324 76 248
Total reported in other assets, including other intangibles 1,613 711 902
Value of business acquired (reported in deferred policy acquisition costs) 168 20 148
Internal-use software (reported in property and equipment) 1,942 1,307 635
TOTAL OTHER INTANGIBLE ASSETS $ 3,723 $ 2,038 $ 1,685
Property and equipment was comprised of the following as of December 31:
Accumulated Net Carrying
(Dollars in millions)
Cost Amortization Value
2014
Internal-use software $ 2,191 $ 1,467 $ 724
Other property and equipment 1,740 962 778
TOTAL PROPERTY AND EQUIPMENT $ 3,931 $ 2,429 $ 1,502
2013
Internal-use software $ 1,942 $ 1,307 $ 635
Other property and equipment 1,747 918 829
TOTAL PROPERTY AND EQUIPMENT $ 3,689 $ 2,225 $ 1,464
Other property and equipment includes assets recorded under capital as of December 31, 2013. The reduction in assets recorded under
leases with a cost of $84 million, accumulated amortization of capital leases in 2014, compared with the prior year, was primarily
$36 million, and a net carrying value of $48 million as of related to the Company’s purchase of a building in South Korea that it
December 31, 2014. Other property and equipment includes assets had previously leased. Current capital lease agreements are for
recorded under capital leases with a cost of $306 million, accumulated equipment and generally have a term of 48 months with the
amortization of $16 million, and a net carrying value of $290 million equipment returned to the lessor at the end of the term.
Depreciation and amortization was comprised of the following for the years ended December 31:
(Dollars in millions)
2014 2013 2012
Internal-use software $ 260 $ 225 $ 209
Other property and equipment 153 160 144
Value of business acquired (reported in deferred policy acquisition costs) 12 19 2
Other intangibles 163 193 205
TOTAL DEPRECIATION AND AMORTIZATION $ 588 $ 597 $ 560
Other property and equipment includes amortization on assets years to be as follows: $425 million in 2015, $348 million in 2016,
recorded under capital leases of $20 million in 2014 and $16 million $237 million in 2017, $154 million in 2018, and $129 million in
in 2013. 2019.
The Company estimates annual pre-tax amortization for intangible
assets, including internal-use software, over the next five calendar
80 CIGNA CORPORATION - 2014 Form 10-K