Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA



	2018			2017			2016 (a)			2015			2014
	(dollars in millions, except per common share results)
Summary of Operating Results:
Revenues:
Premiums	$	54,941		$	52,380		$	53,021		$	52,409		$	45,959
Services	1,457			982			969			1,406			2,164
Investment income	514			405			389			474			377
Total revenues	56,912			53,767			54,379			54,289			48,500
Operating expenses:
Benefits	45,882			43,496			45,007			44,269			38,166
Operating costs	7,525			6,567			7,173			7,295			7,639
Merger termination fee and related costs, net	—			(936		)	104			23			—
Depreciation and amortization	405			378			354			355			333
Total operating expenses	53,812			49,505			52,638			51,942			46,138
Income from operations	3,100			4,262			1,741			2,347			2,362
Loss (gain) on sale of business	786			—			—			(270		)	—
Interest expense	218			242			189			186			192
Other expense, net	33			—			—			—			—
Income before income taxes and equity in net earnings	2,063			4,020			1,552			2,431			2,170
Provision for income taxes	391			1,572			938			1,155			1,023
Equity in net earnings of Kindred at Home	11			—			—			—			—
Net income	$	1,683		$	2,448		$	614		$	1,276		$	1,147
Basic earnings per common share	$	12.24		$	16.94		$	4.11		$	8.54		$	7.44
Diluted earnings per common share	$	12.16		$	16.81		$	4.07		$	8.44		$	7.36
Dividends declared per common share	$	2.00		$	1.60		$	1.16		$	1.15		$	1.11
Financial Position:
Cash and investments	$	12,780		$	16,344		$	13,675		$	11,681		$	11,482
Total assets	25,413			27,178			25,396			24,678			23,497
Benefits payable	4,862			4,668			4,563			4,976			4,475
Debt	6,069			4,920			4,092			4,093			3,795
Stockholders’ equity	10,161			9,842			10,685			10,346			9,646
Cash flows from operations	$	2,173		$	4,051		$	1,936		$	868		$	1,618
Key Financial Indicators:
Benefit ratio	83.5		%	83.0		%	84.9		%	84.5		%	83.0		%
Operating cost ratio	13.3		%	12.3		%	13.3		%	13.6		%	15.9		%
Membership by Segment:
Retail segment:
Medical membership	9,161,500			9,206,300			8,751,300			8,327,700			7,360,300
Group and Specialty segment:
Medical membership	7,415,200			4,638,200			4,793,300			4,963,400			5,430,200
Specialty membership	6,072,300			6,986,000			6,961,200			7,221,800			7,668,500
Individual commercial segment:
Medical membership	—			128,800			654,800			899,100			1,016,200
Other Businesses:
Medical membership	—			29,800			30,800			32,600			35,000
Consolidated:
Total medical membership	16,576,700			14,003,100			14,230,200			14,222,800			13,841,700
Total specialty membership	6,072,300			6,986,000			6,961,200			7,221,800			7,668,500


(a)	Includes a reduction in premiums revenue of $583 million ($367 million after tax, or $2.43 per diluted common share) associated with the write-off of commercial risk corridor receivables. Also includes benefits expense of $505 million ($318 million after tax, or $2.11 per diluted common share) for reserve strengthening associated with our non-strategic closed block of long-term care insurance policies, which were sold in 2018.

(a)

Includes a reduction in premiums revenue of $583 million ($367 million after tax, or $2.43 per diluted common share) associated with the write-off of commercial risk corridor receivables. Also includes benefits expense of $505 million ($318 million after tax, or $2.11 per diluted common share) for reserve strengthening associated with our non-strategic closed block of long-term care insurance policies, which were sold in 2018.

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