Cigna 2014 Annual Report Download - page 159

PART IV
ITEM 15. Exhibits and Financial Statement Schedules
Cigna Corporation and Subsidiaries
Schedule II – Condensed Financial Information of Cigna Corporation (Registrant)
Notes to Condensed Financial Statements
The accompanying condensed financial statements should be read in Note 1 – For purposes of these condensed financial statements, Cigna
conjunction with the Consolidated Financial Statements and the Corporation’s (the ‘‘Company’’) wholly-owned and majority-owned
accompanying notes thereto contained in this Form 10-K. subsidiaries are recorded using the equity basis of accounting.
Note 2 – Short-term and long-term debt consisted of the following at December 31:
(In millions) December 31, 2014 December 31, 2013
Short-term:
Commercial Paper $ 100 $ 100
TOTAL SHORT-TERM DEBT $ 100 $ 100
Long-term:
Uncollateralized debt:
$600 million, 2.75% Notes due 2016 $ 600 $ 600
$250 million, 5.375% Notes due 2017 250 250
$131 million, 6.35% Notes due 2018 131 131
$251 million, 8.5% Notes due 2019 251 251
$250 million, 4.375% Notes due 2020
(1)
254 249
$300 million, 5.125% Notes due 2020
(1)
303 299
$300 million, 4.5% Notes due 2021
(1)
303 299
$750 million, 4% Notes due 2022 745 744
$100 million, 7.65% Notes due 2023 100 100
$17 million, 8.3% Notes due 2023 17 17
$300 million, 7.875% Debentures due 2027 300 300
$83 million, 8.3% Step Down Notes due 2033 83 83
$500 million, 6.15% Notes due 2036 500 500
$300 million, 5.875% Notes due 2041 298 298
$750 million, 5.375% Notes due 2042 750 750
TOTAL LONG-TERM DEBT $ 4,885 $ 4,871
(1) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.
In December, 2014, the Company entered into an updated revolving 2014, the Company had $6.5 billion of borrowing capacity within the
credit and letter of credit agreement for $1.5 billion, that permits up maximum debt coverage covenant in the agreement, in addition to the
to $500 million to be used for letters of credit. This agreement extends $5.2 billion of debt outstanding. Letters of credit outstanding as of
through December 2019 and is diversified among 16 banks, with December 31, 2014 totaled $23 million. The Company was in
three banks each having 12% of the commitment and the remainder compliance with its debt covenants as of December 31, 2014.
spread among 13 banks. The credit agreement includes options, Maturities of debt are as follows (in millions): none in 2015, $600 in
subject to consent by the administrative agent and the committing 2016, $250 in 2017, $131 in 2018, $251 in 2019 and the remainder
banks, to increase the commitment amount to $2 billion and to in years after 2019. Interest expense on long-term and short-term debt
extend the term past December 2019. The credit agreement is was $258 million in 2014, $264 million in 2013, and $262 million in
available for general corporate purposes, including for the issuance of 2012. Interest paid on long-term and short-term debt was
letters of credit. This agreement has certain covenants, including a $252 million in 2014, $259 million in 2013, and $242 million in
financial covenant requiring the Company to maintain a leverage ratio 2012.
of total consolidated debt-to-consolidated capitalization (each as
defined in the credit agreement) at or below 0.50. As of December 31,
CIGNA CORPORATION - 2014 Form 10-K FS-7