Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

Condensed Consolidating Statements of Income
	For the Three Months Ended June 30, 2019
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Revenues
Pharmacy revenues	$	-	$	-	$	-	$	18,978	$	3,291	$	14,776	$	(10,757)	$	26,288
Premiums		-		-		-		-		-		9,803		-		9,803
Fees and other revenues		-		-		-		225		9		4,417		(2,263)		2,388
Net investment income		1		-		27		4		3		305		-		340
Total revenues		1		-		27		19,207		3,303		29,301		(13,020)		38,819
Benefits and expenses
Pharmacy and other service costs		-		-		-		17,660		2,977		16,274		(11,948)		24,963
Medical costs and other benefit expenses		-		-		-		-		-		7,612		(36)		7,576
Selling, general and administrative expenses		-		87		30		924		231		3,144		(1,036)		3,380
Amortization of acquired intangible assets		-		-		-		574		82		81		-		737
Total benefits and expenses		-		87		30		19,158		3,290		27,111		(13,020)		36,656
Income (loss) from operations		1		(87)		(3)		49		13		2,190		-		2,163
Interest and other expense		(229)		(53)		(122)		(3)		(5)		(16)		-		(428)
Intercompany interest income (expense)		(34)		(8)		122		(61)		(38)		19		-		-
Net realized investment gains		-		-		-		-		-		23		-		23
Income (loss) before income taxes		(262)		(148)		(3)		(15)		(30)		2,216		-		1,758
Total income tax (benefit) expense		(69)		(36)		(1)		(4)		(49)		507		-		348
Income (loss) before equity in earnings of subsidiaries		(193)		(112)		(2)		(11)		19		1,709		-		1,410
Equity in earnings of subsidiaries		1,601		1,069		646		543		95		-		(3,954)		-
Net income		1,408		957		644		532		114		1,709		(3,954)		1,410
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		2		-		2
Shareholders' net income	$	1,408	$	957	$	644	$	532	$	114	$	1,707	$	(3,954)	$	1,408
Other comprehensive income, net of tax		317		315		2		2		-		308		(627)		317
Shareholders' comprehensive income	$	1,725	$	1,272	$	646	$	534	$	114	$	2,015	$	(4,581)	$	1,725

Condensed Consolidating Statements of Income
	For the Three Months Ended June 30, 2018
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Revenues
Pharmacy revenues	$	-	$	-	$	-	$	-	$	-	$	758	$	-	$	758
Premiums		-		-		-		-		-		9,012		-		9,012
Fees and other revenues		-		-		-		-		-		1,358		-		1,358
Net investment income		-		-		-		-		-		352		-		352
Total revenues		-		-		-		-		-		11,480		-		11,480
Benefits and expenses
Pharmacy and other service costs		-		-		-		-		-		613		-		613
Medical costs and other benefit expenses		-		-		-		-		-		6,845		-		6,845
Selling, general and administrative expenses		-		171		-		-		-		2,666		-		2,837
Amortization of acquired intangible assets		-		-		-		-		-		24		-		24
Total benefits and expenses		-		171		-		-		-		10,148		-		10,319
Income (loss) from operations		-		(171)		-		-		-		1,332		-		1,161
Interest and other expense		-		(42)		-		-		-		(14)		-		(56)
Intercompany interest income (expense)		-		(18)		-		-		-		18		-		-
Net realized investment (losses)		-		-		-		-		-		(3)		-		(3)
Income (loss) before income taxes		-		(231)		-		-		-		1,333		-		1,102
Total income tax (benefit) expense		-		(28)		-		-		-		322		-		294
Income (loss) before equity in earnings of subsidiaries		-		(203)		-		-		-		1,011		-		808
Equity in earnings of subsidiaries		806		1,009		-		-		-		-		(1,815)		-
Net income		806		806		-		-		-		1,011		(1,815)		808
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		2		-		2
Shareholders' net income	$	806	$	806	$	-	$	-	$	-	$	1,009	$	(1,815)	$	806
Other comprehensive (loss), net of tax		(296)		(296)		-		-		-		(310)		606		(296)
Shareholders' comprehensive income	$	510	$	510	$	-	$	-	$	-	$	699	$	(1,209)	$	510

Condensed Consolidating Statements of Income
	For the Six Months Ended June 30, 2019
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Revenues
Pharmacy revenues	$	-	$	-	$	-	$	36,600	$	7,054	$	28,918	$	(21,105)	$	51,467
Premiums		-		-		-		-		-		19,774		-		19,774
Fees and other revenues		-		-		-		415		93		7,518		(3,188)		4,838
Net investment income (loss)		(8)		-		42		7		5		640		-		686
Total revenues		(8)		-		42		37,022		7,152		56,850		(24,293)		76,765
Benefits and expenses
Pharmacy and other service costs		-		-		-		34,023		6,666		30,620		(22,296)		49,013
Medical costs and other benefit expenses		-		-		-		-		-		15,232		(36)		15,196
Selling, general and administrative expenses		(99)		160		43		1,759		318		6,463		(1,961)		6,683
Amortization of acquired intangible assets		-		-		-		1,151		165		164		-		1,480
Total benefits and expenses		(99)		160		43		36,933		7,149		52,479		(24,293)		72,372
Income (loss) from operations		91		(160)		(1)		89		3		4,371		-		4,393
Interest and other expense		(466)		(140)		(246)		(7)		(14)		(7)		-		(880)
Intercompany interest income (expense)		(65)		(11)		246		(123)		(77)		30		-		-
Net realized investment gains		-		-		-		-		-		33		-		33
Income (loss) before income taxes		(440)		(311)		(1)		(41)		(88)		4,427		-		3,546
Total income tax (benefit) expense		(106)		(67)		-		(21)		(66)		1,024		-		764
Income (loss) before equity in earnings of subsidiaries		(334)		(244)		(1)		(20)		(22)		3,403		-		2,782
Equity in earnings of subsidiaries		3,110		2,221		1,134		975		179		-		(7,619)		-
Net income		2,776		1,977		1,133		955		157		3,403		(7,619)		2,782
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		6		-		6
Shareholders' net income	$	2,776	$	1,977	$	1,133	$	955	$	157	$	3,397	$	(7,619)	$	2,776
Other comprehensive income, net of tax		746		743		3		3		-		720		(1,469)		746
Shareholders' comprehensive income	$	3,522	$	2,720	$	1,136	$	958	$	157	$	4,117	$	(9,088)	$	3,522

Condensed Consolidating Statements of Income
	For the Six Months Ended June 30, 2018
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Revenues
Pharmacy revenues	$	-	$	-	$	-	$	-	$	-	$	1,475	$	-	$	1,475
Premiums		-		-		-		-		-		18,011		-		18,011
Fees and other revenues		-		-		-		-		-		2,726		-		2,726
Net investment income		-		-		-		-		-		681		-		681
Total revenues		-		-		-		-		-		22,893		-		22,893
Benefits and expenses
Pharmacy and other service costs		-		-		-		-		-		1,174		-		1,174
Medical costs and other benefit expenses		-		-		-		-		-		13,617		-		13,617
Selling, general and administrative expenses		-		235		-		-		-		5,347		-		5,582
Amortization of acquired intangible assets		-		-		-		-		-		51		-		51
Total benefits and expenses		-		235		-		-		-		20,189		-		20,424
Income (loss) from operations		-		(235)		-		-		-		2,704		-		2,469
Interest and other income (expense)		-		(127)		-		-		-		14		-		(113)
Intercompany interest income (expense)		-		(34)		-		-		-		34		-		-
Net realized investment (losses)		-		-		-		-		-		(36)		-		(36)
Income (loss) before income taxes		-		(396)		-		-		-		2,716		-		2,320
Total income tax (benefit) expense		-		(67)		-		-		-		662		-		595
Income (loss) before equity in earnings of subsidiaries		-		(329)		-		-		-		2,054		-		1,725
Equity in earnings of subsidiaries		1,721		2,050		-		-		-		-		(3,771)		-
Net income		1,721		1,721		-		-		-		2,054		(3,771)		1,725
Less: Net income attributable to noncontrolling interests		-		-		-		-		-		4		-		4
Shareholders' net income	$	1,721	$	1,721	$	-	$	-	$	-	$	2,050	$	(3,771)	$	1,721
Other comprehensive (loss), net of tax		(522)		(522)		-		-		-		(547)		1,069		(522)
Shareholders' comprehensive income	$	1,199	$	1,199	$	-	$	-	$	-	$	1,503	$	(2,702)	$	1,199

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets
	As of June 30, 2019
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Assets
Cash and cash equivalents	$	-	$	-	$	521	$	41	$	-	$	3,048	$	-	$	3,610
Investments		16		6		31		-		-		1,612		-		1,665
Accounts receivable, net		-		-		1		4,313		657		6,729		-		11,700
Inventories		-		-		-		-		-		2,298		-		2,298
Other current assets		98		158		-		283		33		864		-		1,436
Total current assets		114		164		553		4,637		690		14,551		-		20,709
Long-term investments		-		10		-		-		-		28,170		-		28,180
Reinsurance recoverables		-		-		-		-		-		5,324		-		5,324
Deferred policy acquisition costs		-		-		-		-		-		2,821		-		2,821
Property and equipment		-		-		-		2,349		-		2,189		-		4,538
Investments in subsidiaries		71,539		29,092		53,246		18,094		8,304		-		(180,275)		-
Intercompany receivables, net		-		2,998		-		9,250		1,800		26,547		(40,595)		-
Goodwill		-		-		30,961		-		-		13,488		-		44,449
Other intangible assets		-		-		8,400		18,017		6,875		4,425		-		37,717
Other assets		27		233		-		148		82		2,044		(216)		2,318
Separate account assets		-		-		-		-		-		8,345		-		8,345
TOTAL ASSETS	$	71,680	$	32,497	$	93,160	$	52,495	$	17,751	$	107,904	$	(221,086)	$	154,401
Liabilities
Current insurance and contractholder liabilities	$	-	$	-	$	-	$	-	$	-	$	6,930	$	-	$	6,930
Pharmacy and service costs payable		-		-		-		9,727		944		726		-		11,397
Accounts payable		24		-		-		812		3		3,678		-		4,517
Accrued expenses and other liabilities		176		338		115		1,513		174		4,397		-		6,713
Short-term debt		1,988		300		-		13		-		9		-		2,310
Total current liabilities		2,188		638		115		12,065		1,121		15,740		-		31,867
Non-current insurance and contractholder liabilities		-		-		-		-		-		20,118		-		20,118
Deferred tax liabilities, net		-		-		2,000		4,766		1,658		1,199		(216)		9,407
Other non-current liabilities		-		702		-		588		242		2,398		-		3,930
Intercompany payables, net		5,201		4,505		30,401		-		-		488		(40,595)		-
Long-term debt		20,476		4,814		10,943		40		504		108		-		36,885
Separate account liabilities		-		-		-		-		-		8,345		-		8,345
TOTAL LIABILITIES		27,865		10,659		43,459		17,459		3,525		48,396		(40,811)		110,552
Redeemable noncontrolling interests		-		-		-		-		-		31		-		31
TOTAL SHAREHOLDERS’ EQUITY		43,815		21,838		49,701		35,036		14,226		59,474		(180,275)		43,815
Noncontrolling interests		-		-		-		-		-		3		-		3
TOTAL EQUITY		43,815		21,838		49,701		35,036		14,226		59,477		(180,275)		43,818
TOTAL LIABILITIES AND EQUITY	$	71,680	$	32,497	$	93,160	$	52,495	$	17,751	$	107,904	$	(221,086)	$	154,401

Condensed Consolidating Balance Sheets
	As of December 31, 2018
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
Assets
Cash and cash equivalents	$	243	$	-	$	633	$	43	$	-	$	2,936	$	-	$	3,855
Investments		-		-		-		-		-		2,045		-		2,045
Accounts receivable, net		-		-		-		4,206		748		5,519		-		10,473
Inventories		-		-		-		-		-		2,821		-		2,821
Other current assets		14		59		-		310		-		1,063		(210)		1,236
Total current assets		257		59		633		4,559		748		14,384		(210)		20,430
Long-term investments		-		10		-		-		-		26,919		-		26,929
Reinsurance recoverables		-		-		-		-		-		5,507		-		5,507
Deferred policy acquisition costs		-		-		-		-		-		2,821		-		2,821
Property and equipment		-		-		-		2,432		-		2,130		-		4,562
Investments in subsidiaries		68,969		27,544		52,035		17,115		8,117		-		(173,780)		-
Intercompany receivables, net		-		4,505		-		7,425		2,335		24,882		(39,147)		-
Goodwill		-		-		31,049		-		-		13,456		-		44,505
Other intangible assets		-		-		8,400		18,962		7,040		4,601		-		39,003
Other assets		48		198		-		68		74		1,488		(246)		1,630
Separate account assets		-		-		-		-		-		7,839		-		7,839
TOTAL ASSETS	$	69,274	$	32,316	$	92,117	$	50,561	$	18,314	$	104,027	$	(213,383)	$	153,226
Liabilities
Current insurance and contractholder liabilities	$	-	$	-	$	-	$	-	$	-	$	6,801	$	-	$	6,801
Pharmacy and service costs payable		-		-		-		8,422		1,579		701		-		10,702
Accounts payable		22		-		-		834		4		3,506		-		4,366
Accrued expenses and other liabilities		396		182		129		1,387		189		4,998		(210)		7,071
Short-term debt		-		1,500		995		353		-		107		-		2,955
Total current liabilities		418		1,682		1,124		10,996		1,772		16,113		(210)		31,895
Non-current insurance and contractholder liabilities		-		-		-		-		-		19,974		-		19,974
Deferred tax liabilities, net		-		-		2,001		5,012		1,685		1,001		(246)		9,453
Other non-current liabilities		-		685		-		497		290		1,998		-		3,470
Intercompany payables, net		4,965		4,361		29,569		-		-		252		(39,147)		-
Long-term debt		22,863		5,110		10,932		24		506		88		-		39,523
Separate account liabilities		-		-		-		-		-		7,839		-		7,839
TOTAL LIABILITIES		28,246		11,838		43,626		16,529		4,253		47,265		(39,603)		112,154
Redeemable noncontrolling interests		-		-		-		-		-		37		-		37
TOTAL SHAREHOLDERS’ EQUITY		41,028		20,478		48,491		34,032		14,061		56,718		(173,780)		41,028
Noncontrolling interest		-		-		-		-		-		7		-		7
TOTAL EQUITY		41,028		20,478		48,491		34,032		14,061		56,725		(173,780)		41,035
TOTAL LIABILITIES AND EQUITY	$	69,274	$	32,316	$	92,117	$	50,561	$	18,314	$	104,027	$	(213,383)	$	153,226

Condensed Consolidating Cash Flow Statements

Condensed Consolidating Cash Flow Statements
	For the Six Months Ended June 30, 2019
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	771	$	1,732	$	103	$	3,312	$	(528)	$	1,610	$	(2,769)	$	4,231
Cash Flows from Investing Activities
Net change in loans due to (from) affiliates		-		1,600		(2,005)		-		-		478		(73)		-
Proceeds from investments sold:
Debt securities and equity securities		-		-		-		-		-		2,036		-		2,036
Investment maturities and repayments:
Debt securities and equity securities		-		-		-		-		-		738		-		738
Commercial mortgage loans		-		-		-		-		-		169		-		169
Other sales, maturities and repayments (primarily short-term and other long-term investments)		-		-		-		-		-		650		-		650
Investments purchased or originated:
Debt securities and equity securities		-		-		-		-		-		(2,212)		-		(2,212)
Commercial mortgage loans		-		-		-		-		-		(184)		-		(184)
Other (primarily short-term and other long-term investments)		(16)		(6)		(31)		-		-		(794)		-		(847)
Property and equipment purchases, net		-		-		-		(147)		-		(350)		-		(497)
Acquisitions, net of cash acquired		-		-		-		-		-		(6)		-		(6)
Other, net		-		-		-		-		-		(6)		-		(6)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(16)		1,594		(2,036)		(147)		-		519		(73)		(159)
Cash Flows from Financing Activities
Net change in amounts due to (from) affiliates		305		(478)		2,821		(2,825)		528		(424)		73		-
Intercompany dividends paid		-		(1,348)		-		-		-		(1,377)		2,725		-
Deposits and interest credited to contractholder deposit funds		-		-		-		-		-		498		-		498
Withdrawals and benefit payments from contractholder deposit funds		-		-		-		-		-		(542)		-		(542)
Net change in short-term debt		990		(1,500)		-		(5)		-		(106)		-		(621)
Repayment of long-term debt		(1,403)		-		(1,000)		(337)		-		-		-		(2,740)
Repurchase of common stock		(866)		-		-		-		-		-		-		(866)
Issuance of common stock		70		-		-		-		-		-		-		70
Other, net		(94)		-		-		-		-		(56)		44		(106)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(998)		(3,326)		1,821		(3,167)		528		(2,007)		2,842		(4,307)
Effect of foreign currency rate changes on cash and cash equivalents		-		-		-		-		-		(10)		-		(10)
Net (decrease) increase in cash and cash equivalents		(243)		-		(112)		(2)		-		112		-		(245)
Cash and cash equivalents, January 1, 2019		243		-		633		43		-		2,936		-		3,855
Cash and cash equivalents, June 30, 2019	$	-	$	-	$	521	$	41	$	-	$	3,048	$	-	$	3,610

Condensed Consolidating Cash Flow Statements
	For the Six Months Ended June 30, 2018
(In millions)	Cigna		Old Cigna		Express Scripts Holding Company		Express Scripts, Inc.		Medco Health Solutions, Inc.		Non-Guarantors		Eliminations and Consolidation Adjustments		Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	-	$	885	$	-	$	-	$	-	$	3,031	$	(896)	$	3,020
Cash Flows from Investing Activities
Net change in loans due to affiliates		-		-		-		-		-		301		(301)		-
Proceeds from investments sold:
Debt securities and equity securities		-		-		-		-		-		1,273		-		1,273
Investment maturities and repayments:
Debt securities and equity securities		-		-		-		-		-		887		-		887
Commercial mortgage loans		-		-		-		-		-		88		-		88
Other sales, maturities and repayments (primarily short-term and other long-term investments)		-		43		-		-		-		369		-		412
Investments purchased or originated:
Debt securities and equity securities		-		-		-		-		-		(3,544)		-		(3,544)
Commercial mortgage loans		-		-		-		-		-		(194)		-		(194)
Other (primarily short-term and other long-term investments)		-		-		-		-		-		(501)		-		(501)
Property and equipment purchases, net		-		-		-		-		-		(220)		-		(220)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		-		43		-		-		-		(1,541)		(301)		(1,799)
Cash Flows from Financing Activities
Net change in amounts due (from) affiliates		-		(301)		-		-		-		-		301		-
Intercompany dividends paid		-		-		-		-		-		(896)		896		-
Deposits and interest credited to contractholder deposit funds		-		-		-		-		-		574		-		574
Withdrawals and benefit payments from contractholder deposit funds		-		-		-		-		-		(594)		-		(594)
Net change in short-term debt		-		(5)		-		-		-		-		-		(5)
Repayment of long-term debt		-		(131)		-		-		-		-		-		(131)
Repurchase of common stock		-		(310)		-		-		-		-		-		(310)
Issuance of common stock		-		27		-		-		-		-		-		27
Other, net		-		(177)		-		-		-		74		-		(103)
NET CASH (USED IN) FINANCING ACTIVITIES		-		(897)		-		-		-		(842)		1,197		(542)
Effect of foreign currency rate changes on cash and cash equivalents		-		-		-		-		-		(17)		-		(17)
Net increase in cash and cash equivalents		-		31		-		-		-		631		-		662
Cash and cash equivalents, January 1, 2018		-		9		-		-		-		2,963		-		2,972
Cash and cash equivalents, June 30, 2018	$	-	$	40	$	-	$	-	$	-	$	3,594	$	-	$	3,634