The following table includes highlights of results and a reconciliation of adjusted income from operations 1 to shareholders’ net income 1 (dollars in millions, except per share amounts; customers in thousands):
|Three Months Ended||Ended|
|September 30,||June 30,||September 30,|
|Adjusted income from operations 1||$||489||$||308||$||434||$||1,282|
|Net realized investment gains (losses), net of taxes||7||9||(3)||16|
|GMIB results, net of taxes 2,5||32||(134)||(51)||22|
|Special items, net of taxes 4||(62)||-||-||(103)|
|Shareholders’ net income 1||$||466||$||183||$||380||$||1,217|
|Adjusted income from operations 1, per share||$||1.69||$||1.13||$||1.49||$||4.42|
|Shareholders’ net income 1, per share||$||1.61||$||0.67||$||1.31||$||4.20|
|As of the Periods Ended|
|September 30,||June 30,||December 31,|
|U.S. Health Care||12,731||11,471||12,619||11,483|
|International (Global Health Benefits & Health Care)||1,240||1,196||1,224||1,197|
- Cash and short term investments at the parent company were approximately $435 million at September 30, 2012 and $3.8 billion at December 31, 2011, which included amounts held at year-end to fund the HealthSpring acquisition that closed on January 31, 2012.
- As of November 1, 2012, the Company repurchased 6 approximately 4.4 million shares of stock for approximately $210 million.
- Consistent with our strategy to deliver differentiated value and affordable solutions for our customers and clients, we have initiated a series of actions to improve our organizational alignment, operational effectiveness, and efficiency, resulting in a $50 million after-tax charge which is reported as a special item. We expect the impact of these actions to reduce annualized operating expenses by approximately $60 million after taxes. The majority of the expense savings is expected to be reinvested in the business to further our differentiated programs that improve the health, well-being and sense of security of our customers.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 2 for a reconciliation of adjusted income (loss) from operations 1 to segment earnings (loss) 1.Health Care This segment includes medical and specialty health care products and services provided on guaranteed cost, retrospectively experience-rated and service-only funding bases. Specialty health care includes behavioral, dental, disease and medical management, stop-loss, and pharmacy-related products and services.