Item 16. FORM 10-K SUMMARY

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 25, 2021

			CIGNA CORPORATION
			By:			/s/ Brian C. Evanko
			Brian C. Evanko
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated as of February 25, 2021.

Signature						Title
/s/ David M. Cordani
David M. Cordani						Chief Executive Officer and Director (Principal Executive Officer)
/s/ Brian C. Evanko
Brian C. Evanko						Executive Vice President and Chief Financial Officer (Principal Financial Officer)
/s/ Mary T. Agoglia Hoeltzel
Mary T. Agoglia Hoeltzel						Senior Vice President, Tax and Chief Accounting Officer (Principal Accounting Officer)
/s/ William J. DeLaney
William J. DeLaney						Director
/s/ Eric J. Foss
Eric J. Foss						Director
/s/ Elder Granger, M.D.
Elder Granger, M.D.						Director
/s/ Isaiah Harris, Jr.
Isaiah Harris, Jr.						Chairman of the Board

/s/ Kathleen M. Mazzarella
Kathleen M. Mazzarella						Director
/s/ Mark McClellan, M.D.
Mark McClellan, M.D.						Director
/s/ John M. Partridge
John M. Partridge						Director
/s/ William L. Roper, M.D.
William L. Roper, M.D.						Director
/s/ Kimberly A. Ross
Kimberly A. Ross						Director
/s/ Eric C. Wiseman
Eric C. Wiseman						Director
/s/ Donna F. Zarcone
Donna F. Zarcone						Director

CIGNA CORPORATION AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENT SCHEDULES

									PAGE
Report of Independent Registered Public Accounting Firm on Financial Statement Schedules									FS-2
Schedules
			I			Condensed Financial Information of Cigna Corporation (Registrant)			FS-3
						Statements of Income for the Years Ended December 31, 2020, 2019 and 2018			FS-3
						Balance Sheets as of December 31, 2020 and 2019			FS-4
						Statements of Cash Flows for the Years Ended December 31, 2020, 2019 and 2018			FS-5
						Notes to Condensed Financial Statements			FS-6
			II			Valuation and Qualifying Accounts for the Years Ended December 31, 2020, 2019 and 2018			FS-8

Schedules other than those listed above are omitted because they are not required or are not applicable, or the required information is shown in the financial statements or notes thereto.

FS-1

Report of Independent Registered Public Accounting Firm on

Financial Statement Schedules

To the Board of Directors and Shareholders of Cigna Corporation

Our audits of the consolidated financial statements referred to in our report dated February 25, 2021 (which report and consolidated financial statements are included under Item 8 in this Annual Report on Form 10-K) also included an audit of the financial statement schedules listed on page FS-1 in Item 15 of this Form 10-K. In our opinion, these financial statement schedules present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

/s/ PricewaterhouseCoopers LLP

Hartford, Connecticut

February 25, 2021

FS-2

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF INCOME

						For the years ended
						December 31,
						Cigna						Cigna						Cigna
(in millions)						2020						2019						2018
Revenues
Net investment income						$	1					$	—					$	123
Intercompany interest income						475						6						—
Total revenues						476						6						123
Operating expenses
Selling, general and administrative expenses						4						(85)						200
Total operating expenses						4						(85)						200
Income (loss) from operations						472						91						(77)
Interest and other (expense)						(1,324)						(1,032)						(244)
Intercompany interest (expense)						(48)						(127)						(5)
Debt extinguishment costs						(171)						—						—
Realized investment (loss)						—						—						(1)
Loss before taxes						(1,071)						(1,068)						(327)
Income tax (benefit)						(234)						(251)						(74)
Loss of Parent Company						(837)						(817)						(253)
Equity in income of subsidiaries						9,295						5,921						2,890
Shareholders' net income						8,458						5,104						2,637
Shareholders' other comprehensive income (loss), net of tax
Net unrealized appreciation (depreciation) on securities and derivatives						(75)						957						(365)
Net translation (losses) gains of foreign currencies						260						(54)						(152)
Postretirement benefits liability adjustment						(105)						(133)						127
Shareholders' other comprehensive income (loss), net of tax						80						770						(390)
Shareholders' comprehensive income						$	8,538					$	5,874					$	2,247

See Notes to Financial Statements on the following pages.

FS-3

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

BALANCE SHEETS

						As of December 31,
(in millions)						2020						2019
Assets
Cash and cash equivalents						$	4,157					$	—
Short-term investments						49						30
Other current assets						4						4
Total current assets						4,210						34
Intercompany receivable						1,666						4,111
Investments in subsidiaries						76,040						77,380
Other noncurrent assets						22						19
TOTAL ASSETS						$	81,938					$	81,544
Liabilities
Short-term debt						$	3,278					$	4,043
Other current liabilities						616						457
Total current liabilities						3,894						4,500
Intercompany payable						5						2,341
Long-term debt						27,718						29,365
TOTAL LIABILITIES						31,617						36,206
Shareholders’ Equity
Common stock (shares issued, 390 and 386; authorized, 600)						4						4
Additional paid-in capital						28,975						28,306
Accumulated other comprehensive loss						(861)						(941)
Retained earnings						28,575						20,162
Less treasury stock, at cost						(6,372)						(2,193)
TOTAL SHAREHOLDERS’ EQUITY						50,321						45,338
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY						$	81,938					$	81,544

See Notes to Financial Statements on the following pages.

FS-4

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF CASH FLOWS

						For the years ended
			December 31,
						Cigna						Cigna						Cigna
(in millions)						2020						2019						2018
Cash Flows from Operating Activities
Shareholders’ net income						$	8,458					$	5,104					$	2,637
Adjustments to reconcile shareholders’ net income
to net cash provided by operating activities
Equity in income of subsidiaries						(9,295)						(5,921)						(2,890)
Debt extinguishment costs						171						—						—
Dividends received from subsidiaries						8,627						2,457						—
Other liabilities						112						43						412
Other, net						500						20						(14)
NET CASH PROVIDED BY OPERATING ACTIVITIES						8,573						1,703						145
Cash Flows from Investing Activities
Net change in loans due to (from) affiliates						(265)						—						—
Short-term investment purchased, net						(19)						(30)						—
Other, net						—						—						(27,115)
NET CASH (USED IN) INVESTING ACTIVITIES						(284)						(30)						(27,115)
Cash Flows from Financing Activities
Net change in amounts due to affiliates						2,262						2,015						4,437
Proceeds on issuance of commercial paper						86						944						—
Payments for debt extinguishment						(181)						—						—
Repayment of long-term debt						(5,996)						(3,002)						—
Net proceeds on issuance of long-term debt						3,465						—						22,856
Issuance of common stock						376						224						1
Common dividends paid						(15)						(15)						—
Repurchase of common stock						(4,042)						(1,987)						(32)
Tax withholding on stock compensation and other						(87)						(82)						(49)
Other						—						(13)						—
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES						(4,132)						(1,916)						27,213
Net increase (decrease) in cash and cash equivalents						4,157						(243)						243
Cash and cash equivalents, beginning of year						—						243						—
Cash and cash equivalents, end of year						4,157						—						243

See Notes to Financial Statements on the following pages.

FS-5

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

NOTES TO CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the accompanying notes thereto contained in this Annual Report on Form 10-K (“Form 10-K”).

Note 1 — Cigna Holding Company (formerly Cigna Corporation) was incorporated in Delaware in 1981. Halfmoon Parent, Inc. was incorporated in Delaware in March 2018. Halfmoon Parent, Inc. was renamed Cigna Corporation and Cigna Holding Company became its subsidiary concurrent with the consummation of the combination with Express Scripts on December 20, 2018.

For purposes of these condensed financial statements, Cigna Corporation’s (the “Company”) wholly-owned and majority-owned subsidiaries are recorded using the equity method of accounting.

Note 2 — See Note 7 – Debt included in Part II, Item 8 of this Form 10-K for a description of the short-term and long-term debt obligations of Cigna Corporation and its subsidiaries.

Debt Issuance and Redemption. In order to decrease future interest expense and reduce future refinancing risk, the Company entered into the following transactions during 2020:

• Debt issuance: On March 16, 2020, the Company issued $3.5 billion of new senior notes. The proceeds of this issuance were mainly used to pay the consideration for the cash tender and redemption offer as described below. Interest on this debt is paid semi-annually.

Principal						Maturity Date						Interest Rate						Net Proceeds
$1,500 million						March 15, 2030						2.4%						$1,491 million
$750 million						March 15, 2040						3.2%						$743 million
$1,250 million						March 15, 2050						3.4%						$1,237 million

• Debt tender and redemption: In March and April 2020, the Company completed a tender offer and an optional redemption totaling $2.9 billion of aggregate principal amount of certain of its outstanding debt securities. The principal amount repurchased in this tender offer was $1.3 billion. Additionally, $1.6 billion of notes were repurchased via optional redemption. The Company recorded a pre-tax loss of $171 million ($124 million after-tax), consisting primarily of premium payments on the tender and optional redemption.

Debt Exchange**.** In the fourth quarter of 2019, the Company settled an exchange of approximately $12.7 billion of Notes issued by Express Scripts Holding Company, Medco Health Solutions, Inc. and Cigna Holding Company for privately placed Notes issued by Cigna with the same interest rates and maturities and comparable other terms. We initiated an exchange offer to register such debt in the second quarter of 2020 and completed the exchange in July 2020.

Debt Repayment. In 2020, the Company repaid $6.0 billion of long-term debt, including the $2.9 billion debt tender and redemption described above. On December 31, 2020 Cigna issued a notice of full redemption to the holders of Cigna’s Senior Floating Rate Notes due 2021 (the “Notes”) pursuant to which Cigna redeemed the entire $1.0 billion aggregate principal amount of the Notes outstanding on January 15, 2021 at a redemption price calculated in accordance with the terms and conditions of the indenture governing the Notes.

Revolving Credit Agreements. Cigna has a revolving credit and letter of credit agreement that matures in April 2023 and is diversified among 23 banks. Cigna can borrow up to $3.25 billion for general corporate purposes, with up to $500 million available for issuance of letters of credit. This revolving credit agreement also includes an option to increase the facility amount up to $500 million and an option to extend the termination date for additional one-year periods, subject to consent of the banks.

Additionally, Cigna has a 364-day $1.0 billion revolving credit agreement that will mature in October 2021. The agreement replaces the $1.0 billion 364-day revolving credit agreement that expired in October 2020. The agreement is diversified among 23 banks. Pursuant to this revolving credit agreement, Cigna can borrow up to $1.0 billion for general corporate purposes. The agreement includes the option to “term out” any revolving loans that are outstanding at maturity by converting them into a term loan maturing on the one year anniversary of conversion.

FS-6

The revolving credit agreements contain customary covenants and restrictions including a financial covenant that the Company’s leverage ratio may not exceed 60%. As of December 31, 2020, there were no outstanding balances under the revolving credit agreements.

Term Loan Credit Agreement**.** On April 1, 2020, the Company borrowed an aggregate principal amount of $1.4 billion under a new 364-Day Term Loan Credit Agreement. In connection with the sale of the Group Life and Disability business, on December 31, 2020 we repaid the entire $1.4 billion balance outstanding.

Commercial Paper. Under our commercial paper program we may issue short-term, unsecured commercial paper notes privately placed on a discount basis through certain broker dealers at any time not to exceed $4.25 billion. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The commercial paper program had approximately $1.0 billion outstanding at December 31, 2020 at an average interest rate of 0.2%.

The Company was in compliance with its debt covenants as of December 31, 2020.

Maturity of the Company’s long-term debt is as follows:

(in millions)
2021						$	2,250
2022						$	1,378
2023						$	3,754
2024						$	714
2025						$	2,957
Maturities after 2025						$	19,182

Note 3 — Intercompany receivables of the Company consist primarily of net amounts due from Express Scripts Holdings of $1.4 billion (consisting of an $8.2 billion receivable offset by a $6.8 billion payable) as of December 31, 2020 and $3.9 billion (consisting of an $8.2 billion receivable offset by a $4.3 billion payable) as of December 31, 2019. Interest income on the receivable was accrued at an annual fixed rate of 5.50%. Interest expense on the payable was accrued at an average rate of 0.97% in 2020.

Note 4 — The Company had guarantees of approximately $87 million as of December 31, 2020. These guarantees are primarily related to outstanding letters of credit. In 2020, no payments have been made on these guarantees.

FS-7

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(in millions)						Balance at beginning of year						Charged (Credited) to costs and expenses						Charged (Credited) to other accounts						Other deductions						Balance at end of year
Description
2020
Investment asset valuation reserves
Available-for-sale debt securities						$	—					$	82					$	—					$	(56)					$	26
Accounts receivable, net						$	252					$	(50)					$	(12)					$	(34)					$	156
Deferred tax asset valuation allowance						$	196					$	10					$	1					$	—					$	207
Reinsurance recoverables (1)						$	2					$	(1)					$	31					$	—					$	32
2019
Accounts receivable, net						$	217					$	51					$	—					$	(16)					$	252
Deferred tax asset valuation allowance						$	199					$	(6)					$	3					$	—					$	196
Reinsurance recoverables						$	2					$	—					$	—					$	—					$	2
2018
Accounts receivable, net						$	207					$	18					$	(3)					$	(5)					$	217
Deferred tax asset valuation allowance (2)						$	72					$	(5)					$	132					$	—					$	199
Reinsurance recoverables						$	3					$	(1)					$	—					$	—					$	2

*(1)*The Company recorded an additional allowance of $31 million on January 1, 2020 upon the adoption of ASU 2016-13

*(2)*Deferred tax valuation allowance amount includes amount assumed from Express Scripts in 2018.

FS-8