Humana 2002 Annual Report Download - page 6

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Humana Inc.
Dollars in thousands, except per share results
For the Year Ended December 31,
Consolidated Statements of Income 2002
Restructuring
and Other
Unusual Items
Adjusted
2002 2001
Revenues:
Premiums ............................................. $10,930,397 $ — $10,930,397 $ 9,938,961
Administrative services fees .............................. 244,396 — 244,396 137,090
Investment and other income .............................. 86,388 19,571 105,959 118,835
Totalrevenues ..................................... 11,261,181 19,571 11,280,752 10,194,886
Operating expenses:
Medical ............................................... 9,138,196 — 9,138,196 8,279,844
Selling, general and administrative ......................... 1,739,192 (30,140) 1,709,052 1,545,129
Depreciation and amortization ............................. 120,730 — 120,730 161,531
Restructuring charge .................................... 35,877 (35,877) ——
Total operating expenses ............................. 11,033,995 (66,017) 10,967,978 9,986,504
Income from operations ...................................... 227,186 85,588 312,774 208,382
Interest expense ........................................ 17,252 — 17,252 25,302
Incomebeforeincometaxes................................... 209,934 85,588 295,522 183,080
Provision for income taxes ................................ 67,179 27,388 94,567 65,909
Netincome ................................................ 142,755 58,200 200,955 117,171
Adjustment to add back goodwill amortization, net of tax ....... — — —52,246
Adjusted net income ......................................... $ 142,755 $ 58,200 $ 200,955 $ 169,417
Basic earnings per common share .............................. $ 0.87 $ 0.36 $1.23$0.71
Adjustment to add back goodwill amortization, net of tax ....... — — —0.32
Adjusted basic earnings per common share ....................... $ 0.87 $ 0.36 $1.23$1.03
Diluted earnings per common share ............................. $ 0.85 $ 0.35 $1.20$0.70
Adjustment to add back goodwill amortization, net of tax ....... — — —0.31
Adjusted diluted earnings per common share ..................... $ 0.85 $ 0.35 $1.20$1.01
For the Year Ended December 31,
Pretax Results by Segment 2002 2001
Commercial Pretax Results, as reported ......................... $ (15,174) $ (2,013)
Adjustment to exclude restructuring and other unusual items ..... 68,901 —
Adjustment to add back goodwill amortization ................ — 33,435
Adjusted Commercial Pretax Income ........................... $ 53,727 $ 31,422
Government Pretax Results, as reported ......................... $ 225,108 $185,093
Adjustment to exclude restructuring and other unusual items ..... 16,687 —
Adjustment to add back goodwill amortization ................ — 21,630
Adjusted Government Pretax Income ........................... $ 241,795 $206,723
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation’s
largest publicly traded health benefits companies, with approximately
6.6 million medical members located primarily in 18 states and Puerto Rico.
Humana offers coordinated health insurance coverage and related services
– through traditional and Internet-based plans – to employer groups,
government-sponsored plans, and individuals.