Humana 2009 Annual Report Download - page 134

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Humana Inc.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS—(Continued)
Although minimum required levels of equity are largely based on premium volume, product mix, and the
quality of assets held, minimum requirements can vary significantly at the state level. Based on the statutory
financial statements as of December 31, 2009, we maintained aggregate statutory capital and surplus of $3.6
billion in our state regulated subsidiaries, $1.2 billion above the aggregate $2.4 billion in applicable statutory
requirements which would trigger any regulatory action by the respective states.
4. ACQUISITIONS
During 2008, we funded a subsidiary’s 2008 acquisition of UnitedHealth Group’s Las Vegas, Nevada
individual SecureHorizons Medicare Advantage HMO business with contributions from Humana Inc., our parent
company, of $225.0 million, included in capital contributions in the condensed statement of cash flows. Refer to
Note 3 of the notes to consolidated financial statements in the Annual Report on Form 10-K for a description of
acquisitions.
5. INCOME TAXES
The release of the liability for unrecognized tax benefits in 2009 as a result of settlements associated with
the completion of the audit of our U.S. income tax returns for 2005 and 2006, reduced tax expense $16.8 million
in 2009. Refer to Note 10 of the notes to consolidated financial statements in the Annual Report on Form 10-K
for a description of income taxes.
6. DEBT
Refer to Note 11 of the notes to consolidated financial statements in the Annual Report on Form 10-K for a
description of debt.
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