HUMANA INC - 10-Q filing on 2012-08-01

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Segment Reporting Information, By Segment

Our segment results were as follows for the three and six months ended June 30, 2012 and 2011:


	Retail		Employer Group		Health and Well-Being Services		Other Businesses			Eliminations/ Corporate			Consolidated
	(in millions)
Three months ended June 30, 2012
Revenues—external customers
Premiums:
Medicare Advantage	$	5,308	$	1,011	$	0	$	0		$	0		$	6,319
Medicare stand-alone PDP		672		2		0		73			0			747

Total Medicare		5,980		1,013		0		73			0			7,066

Fully-insured		250		1,247		0		0			0			1,497
Specialty		42		262		0		0			0			304
Military services		0		0		0		44			0			44
Medicaid and other		0		0		0		255			0			255

Total premiums		6,272		2,522		0		372			0			9,166

Services revenue:
Provider		0		0		245		0			0			245
ASO and other		5		89		0		91			0			185
Pharmacy		0		0		4		0			0			4

Total services revenue		5		89		249		91			0			434

Total revenues—external customers		6,277		2,611		249		463			0			9,600

Intersegment revenues
Services		1		4		2,377		0			(2,382	)		0
Products		0		0		591		0			(591	)		0

Total intersegment revenues		1		4		2,968		0			(2,973	)		0

Investment income		20		10		0		15			54			99

Total revenues		6,298		2,625		3,217		478			(2,919	)		9,699

Operating expenses:
Benefits		5,273		2,074		0		406			(101	)		7,652
Operating costs		625		417		3,064		123			(2,845	)		1,384
Depreciation and amortization		33		20		22		4			(6	)		73

Total operating expenses		5,931		2,511		3,086		533			(2,952	)		9,109

Income (loss) from operations		367		114		131		(55	)		33			590
Interest expense		0		0		0		0			26			26

Income (loss) before income taxes	$	367	$	114	$	131	$	(55	)	$	7		$	564

Benefit expenses for the three months ended June 30, 2012 included favorable prior-year medical claims reserve development not in the ordinary course of business of an estimated $24 million in our Retail segment, $12 million in our Employer Group segment, and $4 million for our Other Businesses. In addition, benefit expenses for our Other Businesses for the three months ended June 30, 2012 included expense of approximately $46 million for a litigation settlement associated with our Military services business.


	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
	(in millions)
Three months ended June 30, 2011
Revenues—external customers
Premiums:
Medicare Advantage	$	4,555	$	764	$	0	$	0	$	0		$	5,319
Medicare stand-alone PDP		601		2		0		77		0			680

Total Medicare		5,156		766		0		77		0			5,999

Fully-insured		206		1,217		0		0		0			1,423
Specialty		30		233		0		0		0			263
Military services		0		0		0		935		0			935
Medicaid and other		0		0		0		229		0			229

Total premiums		5,392		2,216		0		1,241		0			8,849

Services revenue:
Provider		0		0		222		0		0			222
ASO and other		4		87		0		28		0			119
Pharmacy		0		0		3		0		0			3

Total services revenue		4		87		225		28		0			344

Total revenues—external customers		5,396		2,303		225		1,269		0			9,193

Intersegment revenues
Services		0		3		2,074		0		(2,077	)		0
Products		0		0		434		0		(434	)		0

Total intersegment revenues		0		3		2,508		0		(2,511	)		0

Investment income		19		12		0		13		47			91

Total revenues		5,415		2,318		2,733		1,282		(2,464	)		9,284

Operating expenses:
Benefits		4,390		1,800		0		1,149		(70	)		7,269
Operating costs		490		387		2,625		111		(2,420	)		1,193
Depreciation and amortization		32		23		20		3		(10	)		68

Total operating expenses		4,912		2,210		2,645		1,263		(2,500	)		8,530

Income from operations		503		108		88		19		36			754
Interest expense		0		0		0		0		28			28

Income before income taxes	$	503	$	108	$	88	$	19	$	8		$	726

Benefit expenses for the three months ended June 30, 2011 included favorable prior-year medical claims reserve development not in the ordinary course of business of an estimated $32 million in our Retail segment and $9 million for our Other Businesses, partially offset by unfavorable prior-year medical claims reserve development of approximately $8 million in our Employer Group segment.


	Retail		Employer Group		Health and Well-Being Services		Other Businesses			Eliminations/ Corporate			Consolidated
	(in millions)
Six months ended June 30, 2012
Revenues—external customers
Premiums:
Medicare Advantage	$	10,401	$	2,036	$	0	$	0		$	0		$	12,437
Medicare stand-alone PDP		1,332		4		0		139			0			1,475

Total Medicare		11,733		2,040		0		139			0			13,912

Fully-insured		494		2,489		0		0			0			2,983
Specialty		80		522		0		0			0			602
Military services		0		0		0		937			0			937
Medicaid and other		0		0		0		507			0			507

Total premiums		12,307		5,051		0		1,583			0			18,941

Services revenue:
Provider		0		0		478		0			0			478
ASO and other		11		178		0		109			0			298
Pharmacy		0		0		8		0			0			8

Total services revenue		11		178		486		109			0			784

Total revenues—external customers		12,318		5,229		486		1,692			0			19,725

Intersegment revenues
Services		1		8		4,863		0			(4,872	)		0
Products		0		0		1,175		0			(1,175	)		0

Total intersegment revenues		1		8		6,038		0			(6,047	)		0

Investment income		39		20		0		29			105			193

Total revenues		12,358		5,257		6,524		1,721			(5,942	)		19,918

Operating expenses:
Benefits		10,560		4,138		0		1,512			(208	)		16,002
Operating costs		1,253		844		6,218		239			(5,787	)		2,767
Depreciation and amortization		63		40		43		8			(11	)		143

Total operating expenses		11,876		5,022		6,261		1,759			(6,006	)		18,912

Income (loss) from operations		482		235		263		(38	)		64			1,006
Interest expense		0		0		0		0			52			52

Income (loss) before income taxes	$	482	$	235	$	263	$	(38	)	$	12		$	954

Benefit expenses for the six months ended June 30, 2012 included favorable prior-year medical claims reserve development not in the ordinary course of business of approximately $57 million in our Retail segment and $9 million for our Other Businesses, partially offset by unfavorable prior-year medical claims reserve development of approximately $18 million in our Employer Group segment. In addition, benefit expenses for our Other Businesses for the six months ended June 30, 2012 included expense of approximately $46 million for a litigation settlement associated with our Military services business.


	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
	(in millions)
Six months ended June 30, 2011
Revenues—external customers
Premiums:
Medicare Advantage	$	9,080	$	1,560	$	0	$	0	$	0		$	10,640
Medicare stand-alone PDP		1,158		4		0		153		0			1,315

Total Medicare		10,238		1,564		0		153		0			11,955

Fully-insured		407		2,416		0		0		0			2,823
Specialty		56		463		0		0		0			519
Military services		0		0		0		1,858		0			1,858
Medicaid and other		0		0		0		461		0			461

Total premiums		10,701		4,443		0		2,472		0			17,616

Services revenue:
Provider		0		0		437		0		0			437
ASO and other		7		180		0		50		0			237
Pharmacy		0		0		5		0		0			5

Total services revenue		7		180		442		50		0			679

Total revenues—external customers		10,708		4,623		442		2,522		0			18,295

Intersegment revenues
Services		0		6		4,195		0		(4,201	)		0
Products		0		0		869		0		(869	)		0

Total intersegment revenues		0		6		5,064		0		(5,070	)		0

Investment income		38		24		0		25		93			180

Total revenues		10,746		4,653		5,506		2,547		(4,977	)		18,475

Operating expenses:
Benefits		8,944		3,552		0		2,258		(140	)		14,614
Operating costs		1,023		811		5,281		230		(4,896	)		2,449
Depreciation and amortization		59		43		40		5		(13	)		134

Total operating expenses		10,026		4,406		5,321		2,493		(5,049	)		17,197

Income from operations		720		247		185		54		72			1,278
Interest expense		0		0		0		0		55			55

Income before income taxes	$	720	$	247	$	185	$	54	$	17		$	1,223