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Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information of Cigna Corporation (Registrant) [Abstract]  
Condensed Financial Information of Cigna Corporation (Registrant)

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF INCOME

For the years ended
December 31,
Cigna*Old Cigna*Old Cigna*
(in millions)201820172016
Revenues
Net investment income$123$-$-
Total revenues123--
Operating expenses
Selling, general and administrative expenses200195281
Total operating expenses200195281
Income (loss) from operations(77)(195)(281)
Interest and other (expense)(244)(246)(244)
Intercompany interest (expense)(5)(18)(3)
Debt extinguishment costs-(321)-
Realized investment (loss)(1)--
Loss before taxes(327)(780)(528)
Income tax (benefit)(74)(194)(146)
Loss of Parent Company(253)(586)(382)
Equity in income of subsidiaries2,8902,8232,249
Shareholders' net income2,6372,2371,867
Shareholders’ other comprehensive income (loss)
Net unrealized (depreciation) on securities and derivatives(365)(37)(60)
Net translation gains (losses) of foreign currencies(152)304(95)
Postretirement benefits liability adjustment1273323
Shareholders’ other comprehensive income (loss):(390)300(132)
Shareholders' comprehensive income$2,247$2,537$1,735
* As described in Note 3, on December 20, 2018, through the "Merger," Old Cigna merged into a wholly-owned subsidiary of Cigna, and Cigna became the Registrant. Refer to Note 20 for Condensed Consolidated Financial Statements of Cigna and Old Cigna.

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

BALANCE SHEETS

As of December 31,
Cigna*Old Cigna*
(in millions)20182017
Assets
Cash and cash equivalents $ 243 $ 9
Short-term investments-63
Other current assets 1431
Total current assets257103
Intercompany receivable-200
Investments in subsidiaries 68,96922,631
Other noncurrent assets 48221
TOTAL ASSETS$69,274$23,155
Liabilities
Short-term debt$-$231
Other current liabilities 418270
Total current liabilities418501
Intercompany payable4,9652,980
Long-term debt 22,8635,112
Other noncurrent liabilities-851
TOTAL LIABILITIES28,2469,444
Shareholders’ Equity
Common stock (shares issued, 381 and 296; authorized, 600)474
Additional paid-in capital 27,7512,940
Accumulated other comprehensive loss(1,711)(1,082)
Retained earnings 15,08815,800
Less treasury stock, at cost (104)(4,021)
TOTAL SHAREHOLDERS’ EQUITY41,02813,711
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$69,274$23,155
* As described in Note 3, on December 20, 2018, through the "Merger," Old Cigna merged into a wholly-owned subsidiary of Cigna, and Cigna became the Registrant. Refer to Note 20 for Condensed Consolidated Financial Statements of Cigna and Old Cigna.

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF CASH FLOWS

For the years ended
December 31,
Cigna*Old Cigna*Old Cigna*
(in millions)201820172016
Cash Flows from Operating Activities
Shareholders’ net income $2,637$2,237$1,867
Adjustments to reconcile shareholders’ net income
to net cash provided by operating activities
Equity in income of subsidiaries (2,890)(2,823)(2,249)
Dividends received from subsidiaries -758580
Other liabilities 412(224)(9)
Debt extinguishment costs-321-
Other, net(14)333187
NET CASH PROVIDED BY OPERATING ACTIVITIES145602376
Cash Flows from Investing Activities
Short-term investment purchased, net-(6)(3)
Other, net (27,115)(11)(8)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES(27,115)(17)(11)
Cash Flows from Financing Activities
Net change in amounts due to (from) affiliates 4,4371,955(78)
Net change in short-term debt-100(100)
Payments for debt extinguishment -(313)-
Repayment of long-term debt -(1,250)-
Net proceeds on issuance of long-term debt 22,8561,581-
Issuance of common stock 113136
Common dividends paid -(10)(10)
Repurchase of common stock (32)(2,725)(139)
Tax withholding on stock compensation and other(49)(63)(72)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES27,213(594)(363)
Net increase (decrease) in cash and cash equivalents 243(9)2
Cash and cash equivalents, beginning of year -1816
Cash and cash equivalents, end of year $243$9$18
* As described in Note 3, on December 20, 2018, through the "Merger," Old Cigna merged into a wholly-owned subsidiary of Cigna, and Cigna became the Registrant. Refer to Note 20 for Condensed Consolidated Financial Statements of Cigna and Old Cigna.
(1) As required in adopting ASU 2016-09, the Company retrospectively reclassified $79 million cash payments from operating to financing activities in 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amounts reported in financing activities were $61 million in 2017 and $72 million in 2016.

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

NOTES TO CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the accompanying notes thereto contained in this Annual Report on Form 10-K (“Form 10-K”).

Note 1 — For purposes of these condensed financial statements, Cigna Corporation’s (the “Company”) wholly-owned and majority-owned subsidiaries are recorded using the equity basis of accounting.

Note 2 — See Note 5 – Debt included in Part II, Item 8 of this Form 10-K for a description of the short-term and long-term debt obligations of Cigna Corporation and its subsidiaries. Maturity of the Company’s long-term debt is as follows:

Note 3 — Intercompany liabilities of the Company consist primarily of payables to Old Cigna of $4.3 billion as of December 31, 2018. Intercompany liabilities of Old Cigna consisted primarily of payables to Cigna Holdings, Inc. of $2.8 billion as of December 31, 2017. Interest was accrued at an average monthly rate of 2.33% for 2018 and 1.47% for 2017.

Note 4 — The Company had guarantees of approximately $19.6 billion as of December 31, 2018. These guarantees are related to outstanding debt of certain wholly-owned subsidiaries as described in Note 5 and Note 20. In 2018, no payments have been made on these guarantees.