2013 Q4 Form 10-K Financial Statement

#000004907115000019 Filed on February 18, 2015

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2013 Q2
Revenue $10.19B $10.32B $10.32B
YoY Change 6.59% 6.92% 6.41%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.540B $1.461B
YoY Change 9.38% 5.56%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $114.0M $106.0M $104.0M
YoY Change 14.0% 35.9% 26.83%
% of Gross Profit
Operating Expenses $10.20B $1.540B $1.461B
YoY Change 10.3% 9.38% 5.56%
Operating Profit $621.0M $689.0M
YoY Change -11.41% 16.78%
Interest Expense -$35.00M $35.00M $35.00M
YoY Change 29.63% 34.62% 34.62%
% of Operating Profit 5.64% 5.08%
Other Income/Expense, Net
YoY Change
Pretax Income -$49.00M $586.0M $654.0M
YoY Change -117.38% -13.19% 15.96%
Income Tax -$19.00M $218.0M $234.0M
% Of Pretax Income 37.2% 35.78%
Net Earnings -$30.00M $368.0M $420.0M
YoY Change -115.63% -13.62% 17.98%
Net Earnings / Revenue -0.29% 3.57% 4.07%
Basic Earnings Per Share -$0.19 $2.34 $2.66
Diluted Earnings Per Share -$0.19 $2.31 $2.63
COMMON SHARES
Basic Shares Outstanding 157.2M shares 158.0M shares
Diluted Shares Outstanding 158.9M shares 159.5M shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.228B $9.517B $9.075B
YoY Change -0.85% 1.02% -22.77%
Cash & Equivalents $1.138B $1.255B $1.519B
Short-Term Investments $8.090B $8.262B $7.556B
Other Short-Term Assets $2.122B $2.232B $1.960B
YoY Change 27.07% 38.2% 37.83%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $12.30B $12.57B $12.63B
YoY Change 5.04% 7.66% -10.26%
LONG-TERM ASSETS
Property, Plant & Equipment $1.218B $1.180B $1.133B
YoY Change 10.93% 14.12% 16.09%
Goodwill $3.253B $3.716B $3.638B
YoY Change -10.63% 25.46% 30.3%
Intangibles $693.0M $724.0M $675.0M
YoY Change -5.2% 55.7% 53.41%
Long-Term Investments $9.800B $10.97B $9.326B
YoY Change -0.48% 10.88% -3.51%
Other Assets $1.774B $1.697B $1.679B
YoY Change 5.28% 31.96% 36.17%
Total Long-Term Assets $8.435B $8.330B $8.220B
YoY Change 2.01% 17.01% 21.17%
TOTAL ASSETS
Total Short-Term Assets $12.30B $12.57B $12.63B
Total Long-Term Assets $8.435B $8.330B $8.220B
Total Assets $20.74B $20.90B $20.85B
YoY Change 3.78% 11.2% -0.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.821B $2.010B $2.174B
YoY Change -10.82% 2.45% 4.47%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $403.0M $273.0M $246.0M
YoY Change 24.38% -1.44% -5.38%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $6.323B $6.551B $6.770B
YoY Change -0.82% 2.86% -21.97%
LONG-TERM LIABILITIES
Long-Term Debt $2.600B $2.603B $2.606B
YoY Change -0.42% 61.08% 61.06%
Other Long-Term Liabilities $289.0M $316.0M $327.0M
YoY Change 0.35% 17.04% 1.87%
Total Long-Term Liabilities $2.889B $2.919B $2.933B
YoY Change -0.34% 54.77% 51.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.323B $6.551B $6.770B
Total Long-Term Liabilities $2.889B $2.919B $2.933B
Total Liabilities $11.42B $11.30B $11.51B
YoY Change 2.58% 11.79% -7.15%
SHAREHOLDERS EQUITY
Retained Earnings $8.942B $9.014B $8.688B
YoY Change 13.46% 16.6% 18.27%
Common Stock $2.300B $2.274B $2.222B
YoY Change 7.83% 7.72% 6.06%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.084B $1.878B $1.784B
YoY Change 34.19% 21.32% 35.87%
Treasury Stock Shares 42.25M shares 40.21M shares 39.22M shares
Shareholders Equity $9.316B $9.606B $9.335B
YoY Change
Total Liabilities & Shareholders Equity $20.74B $20.90B $20.85B
YoY Change 3.78% 11.2% -0.03%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2013 Q2
OPERATING ACTIVITIES
Net Income -$30.00M $368.0M $420.0M
YoY Change -115.63% -13.62% 17.98%
Depreciation, Depletion And Amortization $114.0M $106.0M $104.0M
YoY Change 14.0% 35.9% 26.83%
Cash From Operating Activities -$16.00M $1.147B $173.0M
YoY Change -107.8% -185.98% -75.5%
INVESTING ACTIVITIES
Capital Expenditures -$131.0M -$123.0M -$97.00M
YoY Change 23.58% 3.36% -2.02%
Acquisitions
YoY Change
Other Investing Activities $92.00M -$872.0M $341.0M
YoY Change -108.32% 195.59% -782.0%
Cash From Investing Activities -$39.00M -$995.0M $244.0M
YoY Change -96.78% 140.34% -263.76%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -62.00M -416.0M -296.0M
YoY Change -106.53% -45.12% -13.95%
NET CHANGE
Cash From Operating Activities -16.00M 1.147B 173.0M
Cash From Investing Activities -39.00M -995.0M 244.0M
Cash From Financing Activities -62.00M -416.0M -296.0M
Net Change In Cash -117.0M -264.0M 121.0M
YoY Change 105.26% -89.47% -43.19%
FREE CASH FLOW
Cash From Operating Activities -$16.00M $1.147B $173.0M
Capital Expenditures -$131.0M -$123.0M -$97.00M
Free Cash Flow $115.0M $1.270B $270.0M
YoY Change -63.02% -204.53% -66.46%

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CY2014Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within Four Years
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CY2014Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within One Year
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CY2014Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within Three Years
FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinThreeYears
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CY2014Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within Two Years
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CY2013Q4 us-gaap Goodwill
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CY2014Q4 us-gaap Goodwill
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CY2014 us-gaap Goodwill Acquired During Period
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CY2014 us-gaap Goodwill Period Increase Decrease
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CY2014 us-gaap Goodwill Written Off Related To Sale Of Business Unit
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CY2013 us-gaap Impairment Of Investments
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CY2014 us-gaap Impairment Of Investments
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CY2013 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2014Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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287000000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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2170000000 USD
CY2012 us-gaap Income Tax Expense Benefit
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CY2013 us-gaap Income Tax Expense Benefit
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690000000 USD
CY2014 us-gaap Income Tax Expense Benefit
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CY2013 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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672000000 USD
CY2014 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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759000000 USD
CY2012 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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14000000 USD
CY2013 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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6000000 USD
CY2014 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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22000000 USD
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5000000 USD
CY2013 us-gaap Income Tax Reconciliation Other Adjustments
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6000000 USD
CY2014 us-gaap Income Tax Reconciliation Other Adjustments
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17000000 USD
CY2012 us-gaap Income Tax Reconciliation State And Local Income Taxes
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27000000 USD
CY2013 us-gaap Income Tax Reconciliation State And Local Income Taxes
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32000000 USD
CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
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48000000 USD
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26000000 USD
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26000000 USD
CY2014 us-gaap Income Tax Reconciliation Tax Exempt Income
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27000000 USD
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734000000 USD
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1030000000 USD
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79000000 USD
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80000000 USD
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64000000 USD
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155000000 USD
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109000000 USD
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330000000 USD
CY2014 us-gaap Increase Decrease In Other Operating Assets
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300000000 USD
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CY2014Q4 us-gaap Liabilities
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CY2013 us-gaap Liabilities Assumed1
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CY2014 us-gaap Liabilities Assumed1
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3021000000 USD
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3262000000 USD
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29941000000 USD
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32237000000 USD
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38123000000 USD
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3775000000 USD
CY2013Q4 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Net
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3893000000 USD
CY2014Q4 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Net
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CY2014Q4 us-gaap Line Of Credit
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CY2014 us-gaap Line Of Credit Facility Covenant Terms
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The terms of the credit agreement include standard provisions related to conditions of borrowing, including a customary material adverse effect clause which could limit our ability to borrow additional funds. In addition, the credit agreement contains customary restrictive and financial covenants as well as customary events of default, including financial covenants regarding the maintenance of a minimum level of net worth of $7.8 billion at December 31, 2014 and a maximum leverage ratio of 3.0:1. We are in compliance with the financial covenants, with actual net worth of $9.6 billion and actual leverage ratio of 1.4:1, as measured in accordance with the credit agreement as of December 31, 2014.
CY2014Q4 us-gaap Line Of Credit Facility Remaining Borrowing Capacity
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CY2013 us-gaap Net Income Loss
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CY2014 us-gaap Net Income Loss
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CY2014Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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11000000 USD
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83000000 USD
CY2013 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2014 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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65000000 USD
CY2012 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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33000000 USD
CY2013 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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22000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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20000000 USD
CY2012 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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21000000 USD
CY2013 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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14000000 USD
CY2012 us-gaap Payments To Acquire Available For Sale Securities Debt
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3221000000 USD
CY2013 us-gaap Payments To Acquire Available For Sale Securities Debt
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3261000000 USD
CY2014 us-gaap Payments To Acquire Available For Sale Securities Debt
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2883000000 USD
CY2012 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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1235000000 USD
CY2013 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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187000000 USD
CY2014 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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18000000 USD
CY2012 us-gaap Payments To Acquire Property Plant And Equipment
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410000000 USD
CY2013 us-gaap Payments To Acquire Property Plant And Equipment
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441000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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13000000 USD
CY2012 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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12000000 USD
CY2013 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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8000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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7000000 USD
CY2012 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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164000000 USD
CY2013 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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-338000000 USD
CY2014 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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122000000 USD
CY2012 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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104000000 USD
CY2013 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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-214000000 USD
CY2014 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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78000000 USD
CY2012 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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60000000 USD
CY2013 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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-124000000 USD
CY2014 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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44000000 USD
CY2013Q4 us-gaap Other Liabilities Noncurrent
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289000000 USD
CY2014Q4 us-gaap Other Liabilities Noncurrent
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291000000 USD
CY2013Q4 us-gaap Other Short Term Borrowings
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403000000 USD
CY2014Q4 us-gaap Other Short Term Borrowings
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334000000 USD
CY2012 us-gaap Payments For Losses And Loss Adjustment Expense
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">REPORTING ENTITY</font></div><div style="line-height:120%;padding-bottom:12px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Nature of Operations</font></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Humana Inc., headquartered in Louisville, Kentucky, is a leading health and well-being company focused on making it easy for people to achieve their best health with clinical excellence through coordinated care. The company&#8217;s strategy integrates care delivery, the member experience, and clinical and consumer insights to encourage engagement, behavior change, proactive clinical outreach and wellness for the millions of people we serve across the country. References throughout these notes to consolidated financial statements to &#8220;we,&#8221; &#8220;us,&#8221; &#8220;our,&#8221; &#8220;Company,&#8221; and &#8220;Humana,&#8221; mean Humana Inc. and its subsidiaries. We derived approximately </font><font style="font-family:inherit;font-size:10pt;">73%</font><font style="font-family:inherit;font-size:10pt;"> of our total premiums and services revenue from contracts with the federal government in </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">15%</font><font style="font-family:inherit;font-size:10pt;"> related to our federal government contracts with the Centers for Medicare and Medicaid Services, or CMS, to provide health insurance coverage for individual Medicare Advantage members in Florida. CMS is the federal government&#8217;s agency responsible for administering the Medicare program.</font></div></div>

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