Humana 2007 Annual Report Download - page 40

ITEM 6. SELECTED FINANCIAL DATA
2007 (a) 2006 (b) 2005 (c) 2004 (d) 2003 (e)
(in thousands, except per common share results, membership and ratios)
Summary of Operations:
Revenues:
Premiums .................................... $24,434,347 $20,729,182 $14,001,591 $12,689,432 $11,825,283
Administrative services fees ...................... 391,515 341,211 259,437 272,796 271,676
Investment income ............................. 314,239 291,880 142,976 132,838 122,041
Other revenue ................................. 149,888 54,264 14,123 9,259 7,311
Total revenues ............................. 25,289,989 21,416,537 14,418,127 13,104,325 12,226,311
Operating expenses:
Benefits ...................................... 20,270,531 17,421,204 11,651,470 10,669,647 9,879,421
Selling, general and administrative ................. 3,476,468 3,021,509 2,195,604 1,894,336 1,866,531
Depreciation and amortization .................... 184,812 148,598 128,858 117,792 126,779
Total operating expenses ..................... 23,931,811 20,591,311 13,975,932 12,681,775 11,872,731
Income from operations ............................. 1,358,178 825,226 442,195 422,550 353,580
Interest expense .................................... 68,878 63,141 39,315 23,172 17,367
Income before income taxes .......................... 1,289,300 762,085 402,880 399,378 336,213
Provision for income taxes ........................... 455,616 274,662 106,150 129,431 112,474
Net income ....................................... $ 833,684 $ 487,423 $ 296,730 $ 269,947 $ 223,739
Basic earnings per common share ...................... $ 5.00 $ 2.97 $ 1.83 $ 1.68 $ 1.41
Diluted earnings per common share .................... $ 4.91 $ 2.90 $ 1.79 $ 1.66 $ 1.38
Financial Position:
Cash and investments ............................... $ 6,690,820 $ 5,347,454 $ 3,477,955 $ 3,074,189 $ 2,927,213
Total assets ....................................... 12,879,074 10,098,486 6,846,851 5,645,523 5,375,449
Benefits payable ................................... 2,696,833 2,410,407 1,849,142 1,389,845 1,260,546
Debt ............................................. 1,687,823 1,269,100 815,044 636,696 642,638
Stockholders’ equity ................................ 4,028,937 3,053,886 2,508,874 2,124,248 1,868,972
Key Financial Indicators:
Benefits ratio ...................................... 83.0% 84.0% 83.2% 84.1% 83.5%
SG&A expense ratio ................................ 13.9% 14.3% 15.4% 14.6% 15.4%
Medical Membership by Segment:
Government:
Medicare Advantage ............................ 1,143,000 1,002,600 557,800 377,200 328,600
Medicare stand-alone PDP ....................... 3,442,000 3,536,600 — — —
Total Medicare ............................ 4,585,000 4,539,200 557,800 377,200 328,600
Military services insured ......................... 1,719,100 1,716,400 1,750,900 1,789,400 1,849,700
Military services ASO ........................... 1,146,800 1,163,600 1,138,200 1,082,400 1,057,200
Total military services ....................... 2,865,900 2,880,000 2,889,100 2,871,800 2,906,900
Medicaid insured ............................... 384,400 390,700 457,900 478,600 468,900
Medicaid ASO ................................ 180,600 178,400 — — —
Total Medicaid ............................ 565,000 569,100 457,900 478,600 468,900
Total Government ...................... 8,015,900 7,988,300 3,904,800 3,727,600 3,704,400
Commercial:
Fully-insured .................................. 1,808,600 1,754,200 1,999,800 2,286,500 2,352,800
ASO ........................................ 1,643,000 1,529,600 1,171,000 1,018,600 712,400
Total Commercial ...................... 3,451,600 3,283,800 3,170,800 3,305,100 3,065,200
Total medical membership ........... 11,467,500 11,272,100 7,075,600 7,032,700 6,769,600
Specialty Membership:
Dental ....................................... 3,639,800 1,452,000 1,456,500 1,246,700 1,147,400
Vision ....................................... 2,272,800 — — — —
Other supplemental benefits ...................... 871,200 450,800 445,600 461,500 520,700
Total specialty membership .......... 6,783,800 1,902,800 1,902,100 1,708,200 1,668,100
(a) Includes the acquired operations of DefenseWeb Technologies, Inc. from March 1, 2007, the acquired operations of CompBenefits
Corporation from October 1, 2007, and the acquired operations of KMG America Corporation from November 30, 2007. Also includes
the benefit of $68.9 million ($43.0 million after tax, or $0.25 per diluted share) related to our 2006 Medicare Part D reconciliation with
CMS and the settlement of some TRICARE contractual provisions related to prior years.
(b) Includes the acquired operations of CHA Service Company from May 1, 2006.
(c) Includes the acquired operations of CarePlus Health Plans of Florida from February 16, 2005, and the acquired operations of Corphealth,
Inc. from December 20, 2005. Also includes expenses of $71.9 million ($44.8 million after tax, or $0.27 per diluted common share) for a
class action litigation settlement, as well as expenses of $27.0 million ($16.9 million after tax, or $0.10 per diluted common share)
related to Hurricane Katrina. These expenses were partially offset by the realization of a tax gain contingency of $22.8 million, or $0.14
per diluted share.
(d) Includes the acquired operations of Ochsner Health Plan from April 1, 2004.
(e) Includes expenses of $30.8 million pretax ($18.8 million after tax, or $0.12 per diluted common share) for the writedown of building and
equipment and software abandonment expenses. These expenses were partially offset by a gain of $15.2 million pretax ($10.1 million
after tax, or $0.06 per diluted common share) for the sale of a venture capital investment. The net impact of these items reduced pretax
income by $15.6 million ($8.7 million after tax, or $0.05 per diluted common share).
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