Cigna Group
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
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Segment Information
Note 25 – Segment Information
See Note 1 to the Consolidated Financial Statements for a description of our segments. A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcare segments.
The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before income taxes excluding pre-tax income (loss) attributable to noncontrolling interests, net realized investment results, amortization of acquired intangible assets, and special items. The Cigna Group's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results.
The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and The Cigna Group's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business.
The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance.
The following table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted:
| For the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||||
| (In millions) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax |
| Loss (gain) on sale of businesses | $1,499 | $1,429 | $(1,662) | $(1,332) | $— | $— |
| Charge for organizational efficiency plan (Selling, general and administrative expenses) | 252 | 193 | 22 | 17 | 168 | 119 |
| Charges (benefits) associated with litigation matters (Selling, general and administrative expenses) | 201 | 171 | (28) | (20) | (27) | (21) |
| Integration and transaction-related costs (Selling, general and administrative expenses) | 45 | 35 | 135 | 103 | 169 | 71 |
| Deferred tax (benefits), net (Income taxes, less amount attributable to noncontrolling interests) | — | (1,071) | — | — | — | — |
| Debt extinguishment costs | — | — | — | — | 141 | 110 |
| Total impact from special items | $1,997 | $757 | $(1,533) | $(1,232) | $451 | $279 |
Effective January 1, 2023, we adopted amended accounting guidance for long-duration insurance contracts. See Note 2 to the Consolidated Financial Statements for further information. Prior period summarized segment information has been retrospectively adjusted to conform to this new basis of accounting. Summarized segment financial information was as follows:
| (In millions) · Evernorth Health Services · Cigna Healthcare · Other Operations · Corporate and Eliminations · Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | ||||||||
| Revenues from external customers | $147,588 | $46,219 | $291 | $1 | $194,099 | |||
| Intersegment revenues | 5,670 | 4,332 | — | (10,002) | ||||
| Net investment income | 241 | 597 | 305 | 23 | 1,166 | |||
| Total revenues | 153,499 | 51,148 | 596 | (9,978) | 195,265 | |||
| Net realized investment results from certain equity method investments | — | 57 | — | — | 57 | |||
| Adjusted revenues | $153,499 | $51,205 | $596 | $(9,978) | $195,322 | |||
| Depreciation and amortization | $2,438 | $569 | $3 | $25 | $3,035 | |||
| Income (loss) before income taxes | $4,768 | $2,664 | $76 | $(1,995) | $5,513 | |||
| Pre-tax adjustments to reconcile to adjusted income from operations | ||||||||
| (Income) attributable to noncontrolling interests | (144) | (2) | — | — | (146) | |||
| Net realized investment losses (1) | — | 133 | 2 | — | 135 | |||
| Amortization of acquired intangible assets | 1,774 | 45 | — | — | 1,819 | |||
| Special items | ||||||||
| Loss on sale of businesses | — | 1,481 | 18 | — | 1,499 | |||
| Charge for organizational efficiency plan | — | — | — | 252 | 252 | |||
| Charges associated with litigation matters | 44 | 157 | — | — | 201 | |||
| Integration and transaction-related costs | — | — | — | 45 | 45 | |||
| Pre-tax adjusted income (loss) from operations | $6,442 | $4,478 | $96 | $(1,698) | $9,318 | |||
| (In millions) | Evernorth Health Services | Cigna Healthcare | Other Operations | Corporate and Eliminations | Total | |||
| 2022 | ||||||||
| Revenues from external customers | $135,786 | $41,738 | $1,839 | $— | $179,363 | |||
| Intersegment revenues | 4,463 | 2,535 | — | (6,998) | ||||
| Net investment income | 86 | 638 | 424 | 7 | 1,155 | |||
| Total revenues | 140,335 | 44,911 | 2,263 | (6,991) | 180,518 | |||
| Net realized investment results from certain equity method investments | — | 126 | — | — | 126 | |||
| Adjusted revenues | $140,335 | $45,037 | $2,263 | $(6,991) | $180,644 | |||
| Depreciation and amortization | $2,283 | $638 | $6 | $10 | $2,937 | |||
| Income (loss) before income taxes | $4,421 | $3,470 | $2,101 | $(1,595) | $8,397 | |||
| Pre-tax adjustments to reconcile to adjusted income from operations | ||||||||
| (Income) attributable to noncontrolling interests | (66) | (4) | (14) | — | (84) | |||
| Net realized investment losses (1) | — | 530 | 83 | — | 613 | |||
| Amortization of acquired intangible assets | 1,772 | 103 | 1 | — | 1,876 | |||
| Special items | ||||||||
| (Gain) on sale of businesses | — | — | (1,662) | — | (1,662) | |||
| Charge for organizational efficiency plan | — | — | — | 22 | 22 | |||
| (Benefits) associated with litigation matters | — | — | — | (28) | (28) | |||
| Integration and transaction-related costs | — | — | — | 135 | 135 | |||
| Pre-tax adjusted income (loss) from operations | $6,127 | $4,099 | $509 | $(1,466) | $9,269 | |||
| (In millions) | Evernorth Health Services | Cigna Healthcare | Other Operations | Corporate and Eliminations | Total |
|---|---|---|---|---|---|
| Revenues from external customers | $127,692 | $41,369 | $3,459 | $— | $172,520 |
| Intersegment revenues | 4,203 | 2,271 | — | (6,474) | |
| Net investment income (loss) | 17 | 1,003 | 530 | (1) | 1,549 |
| Total revenues | 131,912 | 44,643 | 3,989 | (6,475) | 174,069 |
| Net realized investment results from certain equity method investments | — | — | — | — | — |
| Adjusted revenues | $131,912 | $44,643 | $3,989 | $(6,475) | $174,069 |
| Depreciation and amortization | $2,316 | $551 | $52 | $4 | $2,923 |
| Income (loss) before income taxes | $3,908 | $3,804 | $868 | $(1,790) | $6,790 |
| Pre-tax adjustments to reconcile to adjusted income from operations | |||||
| (Income) attributable to noncontrolling interests | (31) | (3) | (24) | — | (58) |
| Net realized investment losses (gains) (1) | 4 | (247) | 45 | — | (198) |
| Amortization of acquired intangible assets | 1,937 | 47 | 14 | — | 1,998 |
| Special items | |||||
| Charge for organizational efficiency plan | — | — | — | 168 | 168 |
| (Benefits) associated with litigation matters | — | — | — | (27) | (27) |
| Integration and transaction-related costs | — | — | — | 169 | 169 |
| Debt extinguishment costs | — | — | — | 141 | 141 |
| Pre-tax adjusted income (loss) from operations | $5,818 | $3,601 | $903 | $(1,339) | $8,983 |
(1) Includes the Company's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.