Humana 2014 Annual Report Download - page 110

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
102
6. MEDICARE PART D
As discussed in Note 2, we cover prescription drug benefits in accordance with Medicare Part D under multiple
contracts with CMS. The consolidated balance sheets include the following amounts associated with Medicare Part D
as of December 31, 2014 and 2013:
2014 2013
Risk
Corridor
Settlement
CMS
Subsidies/
Discounts
Risk
Corridor
Settlement
CMS
Subsidies/
Discounts
(in millions)
Other current assets $ 105 $ 1,690 $ 45 $ 743
Trade accounts payable and accrued expenses (36) (32)(71)(30)
Net current asset (liability) $ 69 $ 1,658 $ (26) $ 713
7. COMMERCIAL 3Rs
The accompanying consolidated balance sheets include the following amounts associated with the 3Rs at
December 31, 2014. No such amounts were recorded in our consolidated balance sheet at December 31, 2013 as the
programs were not effective until January 1, 2014.
2014
Risk
Adjustment
Settlement
Reinsurance
Recoverables
Risk
Corridor
Settlement
(in millions)
Premiums receivable $ 131 $ — $ —
Other current assets — 586 55
Trade accounts payable and accrued expenses (89)—(4)
Net current asset $ 42 $ 586 $ 51
8. PROPERTY AND EQUIPMENT, NET
Property and equipment was comprised of the following at December 31, 2014 and 2013:
2014 2013
(in millions)
Land $ 20 $ 20
Buildings and leasehold improvements 763 693
Equipment 709 639
Computer software 1,714 1,396
3,206 2,748
Accumulated depreciation (1,787) (1,530)
Property and equipment, net $ 1,419 $ 1,218
Depreciation expense was $328 million in 2014, $309 million in 2013, and $263 million in 2012, including
amortization expense for capitalized internally developed and purchased software of $191 million in 2014, $172 million
in 2013, and $151 million in 2012.