Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information [Text Block]

Note 17 ― Segment Information

See Note 1 for a description of the Company's reporting segments.

In the Company's segment disclosures, we present “operating revenues,” defined as total revenues excluding realized investment results. The Company excludes realized investment results from this measure because its portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of the past or future underlying performance of the business.

The Company uses “adjusted income (loss) from operations” as its principal financial measure of segment operating performance because management believes it best reflects the underlying results of business operations and permits analysis of trends in underlying revenue, expenses and profitability. Adjusted income from operations is defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items. Income or expense amounts are excluded from adjusted income from operations for the following reasons:

• Realized investment results are excluded because, as noted above, the Company's portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.
• Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of the Company's business operations.
• Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.This is generally because the nature and size of these matters are not indicative of our ongoing business operations. Further context about these items is provided in the footnotes listed in the table below.

	Three Months Ended				Three Months Ended
	March 31, 2017				March 31, 2016
(In millions)	Before-tax impact		After-tax impact		Before-tax impact		After-tax impact
Long-term care guaranty fund assessment - see Note 16(D)	$	129	$	83	$	-	$	-
Merger-related transaction costs - see Note 3		63		49		40		36
Total impact from special items	$	192	$	132	$	40	$	36

Summarized segment financial information was as follows:

(In millions)	Global Health Care		Global Supplemental Benefits		Group Disability and Life		Other Operations		Corporate		Total
Three Months Ended March 31, 2017
Premiums, fees and other revenues and mail order pharmacy revenues	$	8,106	$	881	$	1,032	$	30	$	(13)	$	10,036
Net investment income		92		28		89		86		8		303
Operating revenues	$	8,198	$	909	$	1,121	$	116	$	(5)	$	10,339
Total revenues	$	8,224	$	922	$	1,129	$	115	$	(5)	$	10,385
Shareholders' net income (loss)	$	544	$	77	$	59	$	20	$	(102)	$	598
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains)		(16)		(9)		(6)		-		-		(31)
Amortization of other acquired intangible assets, net		14		6		-		-		-		20
Special Items:
Long-term care guaranty fund assessment		68		-		15		-		-		83
Merger-related transaction costs		-		-		-		-		49		49
Adjusted income (loss) from operations	$	610	$	74	$	68	$	20	$	(53)	$	719
Three Months Ended March 31, 2016
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,812	$	780	$	1,029	$	27	$	(4)	$	9,644
Net investment income		72		26		80		90		4		272
Operating revenues	$	7,884	$	806	$	1,109	$	117	$	-	$	9,916
Total revenues	$	7,867	$	804	$	1,106	$	107	$	-	$	9,884
Shareholders' net income (loss)	$	514	$	59	$	13	$	14	$	(81)	$	519
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment losses		12		1		2		6		-		21
Amortization of other acquired intangible assets, net		18		7		-		-		-		25
Special Item:
Merger-related transaction costs		-		-		-		-		36		36
Adjusted income (loss) from operations	$	544	$	67	$	15	$	20	$	(45)	$	601

The Company had net receivablesfrom CMS of $0.5 billion as of March 31, 2017and $0.6 billion as of December 31, 2016. These amounts were included in the Consolidated Balance Sheets in premiums, accounts and notes receivable and reinsurance recoverables. Premiums from CMS were 18% of consolidated revenues for the three months ended March 31, 2017and 21% for the three months endedMarch 31, 2016. These amounts were reported in the Global Health Care segment.