Humana 2006 Annual Report Download - page 38

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agencies reviews its ratings periodically and there can be no assurance that current ratings will be maintained in
the future. Our ratings reflect each rating agency’s opinion of our financial strength, operating performance, and
ability to meet our debt obligations or obligations to policyholders, but are not evaluations directed toward the
protection of investors in our common stock and should not be relied upon as such. Downgrades in our ratings,
should they occur, may adversely affect our business, financial condition and results of operations.
Increased litigation and negative publicity could increase our cost of doing business.
The health benefits industry continues to receive significant negative publicity reflecting the public
perception of the industry. This publicity and perception have been accompanied by increased litigation,
including some large jury awards, legislative activity, regulation and governmental review of industry practices.
These factors may adversely affect our ability to market our products or services, may require us to change our
products or services, may increase the regulatory burdens under which we operate and may require us to pay
large judgments or fines. Any combination of these factors could further increase our cost of doing business and
adversely affect our financial position, results of operations and cash flows.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our principal executive office is located in the Humana Building, 500 West Main Street, Louisville,
Kentucky 40202. In addition to this property, our other principal operating facilities are located in Louisville,
Kentucky, Green Bay, Wisconsin, Tampa Bay, Florida, Cincinnati, Ohio and San Juan, Puerto Rico, all of which
are used for customer service, enrollment, and claims processing. Our Louisville and Green Bay facilities also
house other corporate functions.
We own or lease these principal operating facilities in addition to other administrative market offices and
medical centers. We no longer operate most of these medical centers but, rather, lease or sublease them to their
provider operators. The following table lists the location of properties we owned or leased, including our
principal operating facilities, at December 31, 2006:
Medical Centers
Administrative
Offices
Owned Leased Owned Leased Total
Florida ....................................... 3 52 5 65 125
Texas ........................................ — — 3 32 35
Kentucky ..................................... — — 17 10 27
Puerto Rico ................................... — — — 16 16
Georgia ...................................... — — — 13 13
Louisiana ..................................... — — — 11 11
Ohio ......................................... — — — 10 10
Illinois ....................................... 3 1 — 5 9
Alabama ..................................... — — — 8 8
Tennessee .................................... — — — 8 8
Wisconsin .................................... — — 1 7 8
Indiana ....................................... — — — 6 6
Mississippi .................................... — — — 5 5
Oklahoma .................................... — — — 5 5
Others ....................................... — 1 — 72 73
Total .................................... 6 54 26 273 359
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