Humana 2006 Annual Report Download - page 92
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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred income tax balances reflect the impact of temporary differences between the tax bases of assets or
liabilities and their reported amounts in our consolidated financial statements, and are stated at enacted tax rates
expected to be in effect when the reported amounts are actually recovered or settled. Principal components of our
net deferred tax balances at December 31, 2006 and 2005 were as follows:
Assets (Liabilities)
2006 2005
(in thousands)
Investment securities ................................... $ 5,891 $ (14,963)
Depreciable property and intangible assets .................. (138,593) (133,672)
Medical and other expenses payable ....................... 37,969 44,971
Unearned revenues ..................................... 7,618 5,718
Professional liability risks ............................... 13,866 13,650
Stock-based awards .................................... 40,453 39,452
Net operating loss carryforwards .......................... 10,810 11,987
Prepaid expenses and other accruals ....................... (26,600) 25,120
Total net deferred income tax liabilities ............. $ (48,586) $ (7,737)
Amounts recognized in the consolidated balance sheets:
Other current assets ................................ $ 29,467 $ 68,510
Other long-term liabilities ........................... (78,053) (76,247)
Total net deferred income tax liabilities ............. $ (48,586) $ (7,737)
At December 31, 2006, we had approximately $28.7 million of net operating losses to carryforward related to
prior acquisitions. These net operating loss carryforwards, if not used to offset future taxable income, will expire
from 2007 through 2020. Based on our historical record of producing taxable income and profitability, we have
concluded that future operating income will be sufficient to give rise to tax expense to recover all deferred tax assets.
10. DEBT
Long-term debt outstanding was as follows at December 31, 2006 and 2005:
2006 2005
(in thousands)
Long-term debt:
6.45% senior, unsecured notes due 2016, net of unamortized
discount of $1,393 at December 31, 2006 ............. $ 498,607 $ —
6.30% senior, unsecured notes due 2018, net of unamortized
discount of $665 at December 31, 2006 and $724 at
December 31, 2005 .............................. 299,335 299,276
7.25% senior, unsecured notes due 2006, net of unamortized
discount of $86 at December 31, 2005 ................ — 299,914
Fair value of interest rate swap agreements .............. 18,093 6,084
Deferred gain from interest rate swap exchange .......... — 6,131
Total senior notes .............................. 816,035 611,405
Credit agreement .................................. 450,000 200,000
Other long-term borrowings .......................... 3,065 3,639
Total debt .................................... 1,269,100 815,044
Less: Current portion of long-term debt ............. — 301,254
Total long-term debt ............................ $1,269,100 $513,790
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