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Business Segments (Tables)
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Schedule of Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and Gaap Table
An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows:
 
Six Months Ended 
 June 30,
 
2015
 
2014
Benefit costs deferred
$
47,335

 
$
60,899

Government risk-sharing premium adjustment
(16,470
)
 
(35,131
)
Pre-tax addition to segment interim period income
$
30,865

 
$
25,768

After tax amount
$
20,062

 
$
16,749
Reconciliation of Health Premium Included in the Segment Analysis
A reconciliation of health premium included in the segment analysis with health premium as reported in the Condensed Consolidated Statements of Operations is presented in the following table.
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
% Change
Premium per segment analysis:
 
 
 
 
 
Medicare Part D premium
$
154,705

 
$
167,990

 
(8
)
Other health premium
461,082

 
434,533

 
6

Part D risk-sharing adjustment
16,470

 
35,131

 
(53
)
Health premium per Condensed Consolidated Statements of Operations
$
632,257

 
$
637,654

 
(1
)
Reconciliation of Segment Operating Information to Consolidated Statement of Operations
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations
 
 
For the Six Months Ended June 30, 2015
 
Life
 
Health
 
Medicare
Part D
 
Annuity
 
Investment
 
Other &
Corporate
 
Adjustments
 
  
 
Consolidated
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium
$
1,033,380

 
$
461,082

 
$
154,705

 
$
78

 
 
 
 
 
$
16,470

 
(1) 
 
$
1,665,715

Net investment income
 
 
 
 
 
 
 
 
$
386,419

 
 
 


 

 
386,419

Other income
 
 
 
 
 
 
 
 
 
 
$
1,464

 
(104
)
 
(3)  
 
1,360

Total revenue
1,033,380

 
461,082

 
154,705

 
78

 
386,419

 
1,464

 
16,366

 
   
 
2,053,494

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
687,065

 
299,227

 
130,764

 
19,799

 
 
 
 
 
47,335

 
(1)  
 
1,184,190

Required interest on:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy reserves
(273,615
)
 
(34,034
)
 


 
(26,756
)
 
334,405

 
 
 
 
 
 
 
—

Deferred acquisition costs
85,985

 
11,358

 
446

 
607

 
(98,396
)
 
 
 
 
 
 
 
—

Amortization of acquisition costs
177,265

 
40,924

 
1,769

 
4,209

 
 
 
 
 
 
 
 
 
224,167

Commissions, premium taxes, and non-deferred acquisition costs
75,900

 
40,418

 
11,049

 
23

 
 
 
 
 
(104
)
 
(3)  
 
127,286

Insurance administrative expense (2)
 
 
 
 
 
 
 
 
 
 
94,063

 


 

 
94,063

Parent expense
 
 
 
 
 
 
 
 
 
 
4,485

 
 
 
 
 
4,485

Stock compensation expense
 
 
 
 
 
 
 
 
 
 
15,041

 
 
 
 
 
15,041

Interest expense
 
 
 
 
 
 
 
 
38,174

 
 
 
 
 
 
 
38,174

Total expenses
752,600

 
357,893

 
144,028

 
(2,118
)
 
274,183

 
113,589

 
47,231

 
   
 
1,687,406

Subtotal
280,780

 
103,189

 
10,677

 
2,196

 
112,236


(112,125
)

(30,865
)
 
 
 
366,088

Nonoperating items
 
 
 
 
 
 
 
 
 
 
 
 
30,865

 
(1)  
 
30,865

Measure of segment profitability (pretax)
$
280,780

 
$
103,189

 
$
10,677

 
$
2,196

 
$
112,236

 
$
(112,125
)
 
$
—

 
   
 
396,953

Deduct applicable income taxes
 
   
 
(129,909
)
Segment profits after tax
 
   
 
267,044

Add back income taxes applicable to segment profitability
 
   
 
129,909

Add (deduct) realized investment gains (losses)
 
   
 
2,732

Deduct Part D adjustment (1)
 
   
 
(30,865
)
         Pretax income per Condensed Consolidated Statement of Operations
 
   
 
$
368,820

 
(1)
Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.
(2)
Administrative expense is not allocated to insurance segments.
(3)
Elimination of intersegment commission.

Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations *
 
 
For the Six Months Ended June 30, 2014
 
Life
 
Health
 
Medicare
Part D
 
Annuity
 
Investment
 
Other &
Corporate
 
Adjustments
 
 
 
Consolidated
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium
$
981,010

 
$
434,533

 
$
167,990

 
$
222

 
 
 
 
 
$
35,131

 
(1) 
 
$
1,618,886

Net investment income
 
 
 
 
 
 
 
 
$
377,981

 
 
 


 

 
377,981

Other income
 
 
 
 
 
 
 
 
 
 
$
1,266

 
(122
)
 
(3) 
 
1,144

Total revenue
981,010

 
434,533

 
167,990

 
222

 
377,981

 
1,266

 
35,009

 
   
 
1,998,011

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
641,311

 
280,140

 
135,233

 
21,084

 
 
 
 
 
63,956

 
(1,5) 
 
1,141,724

Required interest on:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy reserves
(262,328
)
 
(31,758
)
 


 
(27,616
)
 
321,702

 
 
 
 
 
 
 
—

Deferred acquisition costs
83,633

 
11,223

 
354

 
764

 
(95,974
)
 
 
 
 
 
 
 
—

Amortization of acquisition costs
167,991

 
36,072

 
1,377

 
3,854

 
 
 
 
 


 

 
209,294

Commissions, premium taxes, and non-deferred acquisition costs
69,068

 
39,611

 
12,815

 
26

 
 
 
 
 
(122
)
 
(3) 
 
121,398

Insurance administrative expense (2)
 
 
 
 
 
 
 
 
 
 
89,573

 
2,337

 
(4) 
 
91,910

Parent expense
 
 
 
 
 
 
 
 
 
 
4,045

 


 

 
4,045

Stock compensation expense
 
 
 
 
 
 
 
 
 
 
17,401

 
 
 
 
 
17,401

Interest expense
 
 
 
 
 
 
 
 
38,086

 
 
 
 
 
 
 
38,086

Total expenses
699,675

 
335,288

 
149,779

 
(1,888
)
 
263,814

 
111,019

 
66,171

 
   
 
1,623,858

Subtotal
281,335

 
99,245

 
18,211

 
2,110

 
114,167

 
(109,753
)
 
(31,162
)
 
 
 
374,153

Nonoperating items
 
 
 
 
 
 
 
 
 
 
 
 
31,162

 
(1,4,5) 
 
31,162

Measure of segment profitability (pretax)
$
281,335

 
$
99,245

 
$
18,211

 
$
2,110

 
$
114,167

 
$
(109,753
)
 
$
—

 
   
 
405,315

Deduct applicable income taxes
 
  
 
(132,458
)
Segment profits after tax
 
  
 
272,857

Add back income taxes applicable to segment profitability
 
  
 
132,458

Add (deduct) realized investment gains (losses)
 
  
 
17,196

Deduct Part D adjustment (1)
 
  
 
(25,768
)
Deduct legal settlement expenses (4)
 
  
 
(2,337
)
Deduct administrative settlements (5)
 
 
 
(3,057
)
         Pretax income from continuing operations per Condensed Consolidated Statement of Operations
 
  
 
$
391,349

 
(1)
Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.
(2)
Administrative expense is not allocated to insurance segments.
(3)
Elimination of intersegment commission.
(4)
Legal settlement expenses.
(5)
Administrative settlements.
*
Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards.
Analysis of Profitability By Segment
The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income.
Analysis of Profitability by Segment
 
Six Months Ended June 30,
 
Increase
(Decrease)
 
2015
 
2014*
 
Amount
 
%
Life
$
280,780

 
$
281,335

 
$
(555
)
 
—

Health
103,189

 
99,245

 
3,944

 
4

Medicare Part D
10,677

 
18,211

 
(7,534
)
 
(41
)
Annuity
2,196

 
2,110

 
86

 
4

Investment
112,236

 
114,167

 
(1,931
)
 
(2
)
Other and corporate:
 
 
 
 
 
 
 
Other income
1,464

 
1,266

 
198

 
16

Administrative expense
(94,063
)
 
(89,573
)
 
(4,490
)
 
5

Corporate
(19,526
)
 
(21,446
)
 
1,920

 
(9
)
Pretax total
396,953

 
405,315

 
(8,362
)
 
(2
)
Applicable taxes
(129,909
)
 
(132,458
)
 
2,549

 
(2
)
Total
267,044

 
272,857

 
(5,813
)
 
(2
)
Reconciling items, net of tax:
 
 
 
 
 
 
 
Realized gains (losses) - Investments
1,776

 
11,177

 
(9,401
)
 
 
Part D adjustment
(20,062
)
 
(16,749
)
 
(3,313
)
 
 
Administrative settlements
—

 
(1,987
)
 
1,987

 
 
Legal settlement expense
—

 
(1,519
)
 
1,519

 
 
Net income
$
248,758

 
$
263,779

 
$
(15,021
)
 
(6
)
 
* Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards.