Schedule II - Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Cigna Corporation (Registrant) [Abstract]

Condensed Financial Information Of Parent Company Only, Statements Of Income

	For the years ended
	December 31,
	2016			2015			2014

Operating expenses:
Interest	$	244	$		246	$		258
Intercompany interest		3			2			5
Loss on early extinguishment of debt		-			100			-
Other		281			147			82
Total operating expenses		528			495			345
Loss before income taxes		(528)			(495)			(345)
Income tax benefit⁽¹⁾		(146)			(135)			(89)
Loss of parent company⁽¹⁾		(382)			(360)			(256)
Equity in income of subsidiaries		2,249			2,454			2,358
Shareholders' net income⁽¹⁾		1,867			2,094			2,102

Shareholders' other comprehensive income (loss):

Net unrealized appreciation (depreciation) on securities		(56)			(202)			143
Net unrealized appreciation (depreciation) on derivatives		(4)			15			11
Net translation of foreign currencies		(95)			(212)			(144)
Postretirement benefits liability adjustment		23			85			(426)
Shareholders' other comprehensive loss		(132)			(314)			(416)
Shareholders' comprehensive income⁽¹⁾	$	1,735		$	1,780		$	1,686

As required in adopting Accounting Standards Update (“ASU”) 2016-09, the Company recorded $29 million of income tax benefits for the year ended December 31, 2016 that previously would have been reported in additional paid-in capital. No retrospective adjustments were made to income tax benefits for the years ended 2015 and 2014. See Note 1 for further discussion.

See Notes to Financial Statements on the following pages.

Condensed Financial Information Of Parent Company Only, Balance Sheets

	As of December 31,
	2016		2015

Assets:
Cash and cash equivalents	$	18	$	16
Short-term investments		57		54
Investments in subsidiaries		20,315		18,799
Intercompany receivable		173		182
Other assets		415		497
Total assets	$	20,978	$	19,548


Liabilities:
Intercompany payable	$	998	$	1,086
Short-term debt		257		100
Long-term debt		4,658		4,910
Other liabilities		1,342		1,417
Total liabilities		7,255		7,513


Shareholders' Equity:
Common stock (shares issued, 296; authorized, 600)		74		74
Additional paid-in capital		2,892		2,859
Accumulated other comprehensive loss		(1,382)		(1,250)
Retained earnings		13,855		12,121
Less treasury stock, at cost		(1,716)		(1,769)
Total shareholders' equity		13,723		12,035
Total liabilities and shareholders' equity	$	20,978	$	19,548

See Notes to Financial Statements on the following pages.

Condensed Financial Information Of Parent Company Only, Statements Of Cash Flows

	For the years ended
	December 31,
	2016		2015		2014

Cash Flows from Operating Activities:
Shareholders' Net Income	$	1,867	$	2,094	$	2,102
Adjustments to reconcile shareholders' net income
to net cash provided by operating activities:
Equity in income of subsidiaries		(2,249)		(2,454)		(2,358)
Dividends received from subsidiaries		580		880		1,648
Other liabilities		(9)		112		(73)
Loss on early extinguishment of debt		-		100		-
Other, net⁽¹⁾		187		112		226
Net cash provided by operating activities⁽¹⁾		376		844		1,545

Cash Flows from Investing Activities:
Short-term investment purchased, net		(3)		(54)		-
Other, net		(8)		(14)		11
Net cash provided by / (used in) investing activities		(11)		(68)		11

Cash Flows from Financing Activities:
Net change in amounts due to / from affiliates		(78)		(161)		61
Net change in short-term debt		(100)		-		-
Net proceeds on issuance of long-term debt		-		894		-
Repayment of long-term debt		-		(938)		-
Issuance of common stock		36		154		110
Common dividends paid		(10)		(10)		(11)
Repurchase of common stock		(139)		(671)		(1,612)
Tax withholding on stock compensation⁽¹⁾		(72)		(79)		(53)
Net cash (used in) financing activities⁽¹⁾		(363)		(811)		(1,505)
Net increase (decrease) in cash and cash equivalents		2		(35)		51
Cash and cash equivalents, beginning of year		16		51		-
Cash and cash equivalents, end of year	$	18	$	16	$	51

(1) As required in adopting ASU 2016-09, the Company retrospectively reclassified $79 million in 2015 and $53 million in 2014 of cash payments from operating to financing activities. These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the year ended December 31, 2016 was $72 million. See Note 1 for further discussion.

Condensed Financial Information Of Parent Company Only, Short-term and Long-term Debt

(In millions)		December 31, 2016		December 31, 2015
Short-term:
Commercial Paper	$	-	$	100
Current maturities of long-term debt		250		-
Other, including capital leases		7		-
Total short-term debt	$	257	$	100
Long-term:
Uncollateralized debt:
$250 million, 5.375% Notes due 2017		-		249
$131 million, 6.35% Notes due 2018		131		131
$250 million, 4.375% Notes due 2020⁽¹⁾		252		254
$300 million, 5.125% Notes due 2020⁽¹⁾		301		303
$300 million, 4.5% Notes due 2021⁽¹⁾		302		304
$750 million, 4% Notes due 2022		744		743
$100 million, 7.65% Notes due 2023		100		100
$17 million, 8.3% Notes due 2023		17		17
$900 million, 3.25% Notes due 2025		893		892
$300 million, 7.875 % Debentures due 2027		299		299
$83 million, 8.3% Step Down Notes due 2033		82		82
$500 million, 6.15% Notes due 2036		498		498
$300 million, 5.875% Notes due 2041		296		295
$750 million, 5.375% Notes due 2042		743		743
Total long-term debt	$	4,658	$	4,910
(1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.