Humana 2014 Annual Report Download - page 46

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ITEM 6. SELECTED FINANCIAL DATA
2014 (a) 2013 (b) 2012 (c) 2011 2010 (d)
(dollars in millions, except per common share results)
Summary of Operating Results:
Revenues:
Premiums $ 45,959 $ 38,829 $ 37,009 $ 35,106 $ 32,712
Services 2,164 2,109 1,726 1,360 555
Investment income 377 375 391 366 329
Total revenues 48,500 41,313 39,126 36,832 33,596
Operating expenses:
Benefits 38,166 32,564 30,985 28,823 27,117
Operating costs 7,639 6,355 5,830 5,395 4,380
Depreciation and amortization 333 333 295 270 245
Total operating expenses 46,138 39,252 37,110 34,488 31,742
Income from operations 2,362 2,061 2,016 2,344 1,854
Interest expense 192 140 105 109 105
Income before income taxes 2,170 1,921 1,911 2,235 1,749
Provision for income taxes 1,023 690 689 816 650
Net income $ 1,147 $ 1,231 $ 1,222 $ 1,419 $ 1,099
Basic earnings per common share $ 7.44 $ 7.81 $ 7.56 $ 8.58 $ 6.55
Diluted earnings per common share $ 7.36 $ 7.73 $ 7.47 $ 8.46 $ 6.47
Dividends declared per common share $ 1.11 $ 1.07 $ 1.03 $ 0.75 $ —
Financial Position:
Cash and investments $ 11,482 $ 10,938 $ 11,153 $ 10,830 $ 10,046
Total assets 23,466 20,735 19,979 17,708 16,103
Benefits payable 4,475 3,893 3,779 3,754 3,469
Debt 3,825 2,600 2,611 1,659 1,669
Stockholders’ equity 9,646 9,316 8,847 8,063 6,924
Cash flows from operations $ 1,618 $ 1,716 $ 1,923 $ 2,079 $ 2,242
Key Financial Indicators:
Benefit ratio 83.0% 83.9% 83.7% 82.1% 82.9%
Operating cost ratio 15.9% 15.5% 15.1% 14.8% 13.2%
Membership by Segment:
Retail segment:
Medical membership 7,882,300 6,026,000 5,553,800 4,795,000 3,681,900
Specialty membership 1,165,800 1,042,500 948,700 782,500 510,000
Employer Group segment:
Medical membership 2,834,000 2,833,100 2,852,400 2,794,900 3,009,500
Specialty membership 6,502,700 6,780,800 7,136,200 6,532,600 6,517,500
Other Businesses:
Medical membership 3,125,400 3,125,200 3,682,600 3,594,700 3,595,200
Consolidated:
Total medical membership 13,841,700 11,984,300 12,088,800 11,184,600 10,286,600
Total specialty membership 7,668,500 7,823,300 8,084,900 7,315,100 7,027,500
(a) Includes loss on extinguishment of debt of $37 million ($23 million after tax, or $0.15 per diluted common share) for the redemption of
senior notes.
(b) Includes benefits expense of $243 million ($154 million after tax, or $0.99 per diluted common share) for reserve strengthening associated
with our non-strategic closed block of long-term care insurance policies.
(c) Includes the acquired operations of Arcadian Management Services, Inc. from March 31, 2012, SeniorBridge Family Companies, Inc. from
July 6, 2012, and Metropolitan Health Networks, Inc. from December 21, 2012.
(d) Includes the acquired operations of Concentra Inc. from December 21, 2010. Also includes operating costs of $147 million ($93 million
after tax, or $0.55 per diluted common share) for the write-down of deferred acquisition costs associated with our individual commercial
medical policies and benefits expense of $139 million ($88 million after tax, or $0.52 per diluted common share) associated with reserve
strengthening for our non-strategic closed block of long-term care insurance policies.