PART II ITEM 8 Financial Statements and Supplementary Data Year Ended December 31 Effect of amended As previously accounting As retrospectively reported guidance adjusted Condensed Consolidated Statement of Income (In millions) 2011 2010 2011 2010 2011 2010 Revenues, excluding other revenues $ 21,621 $ 20,874 $ - $ - $ 21,621 $ 20,874 Other revenues 254 260 (10) (6) 244 254 TOTAL REVENUES 21,875 21,134 (10) (6) 21,865 21,128 Benefits and expenses, excluding other operating expenses 13,927 13,457 - - 13,927 13,457 Other operating expenses 5,980 5,807 82 62 6,062 5,869 TOTAL BENEFITS AND EXPENSES 19,907 19,264 82 62 19,989 19,326 Income before Income Taxes 1,968 1,870 (92) (68) 1,876 1,802 Current income taxes 398 331 - - 398 331 Deferred income taxes 242 190 (25) (2) 217 188 TOTAL TAXES 640 521 (25) (2) 615 519 Discontinued Operations - - - - - - Net income 1,328 1,349 (67) (66) 1,261 1,283 Less: Net income attributable to Noncontrolling Interest 1 4 - - 1 4 SHAREHOLDERS’ NET INCOME $ 1,327 $ 1,345 $ (67) $ (66) $ 1,260 $ 1,279 Earnings per share: Basic $ 4.90 $ 4.93 $ (0.25) $ (0.24) $ 4.65 $ 4.69 Diluted $ 4.84 $ 4.89 $ (0.25) $ (0.24) $ 4.59 $ 4.65 As of December 31 Effect of amended As previously accounting As retrospectively reported guidance adjusted Condensed Consolidated Balance Sheet (In millions) 2011 2011 2011 Deferred policy acquisition costs $ 1,312 $ (495) $ 817 Deferred income taxes, net 632 171 803 Other assets, including other intangibles 1,776 (26) 1,750 All other assets 47,327 - 47,327 TOTAL ASSETS $ 51,047 $ (350) $ 50,697 Net translation of foreign currencies $ (3) $ 6 $ 3 Retained earnings 11,143 (356) 10,787 Other shareholders’ equity (2,796) - (2,796) TOTAL SHAREHOLDERS’ EQUITY $ 8,344 $ (350) $ 7,994 measurement principles and expands required disclosures to include quantitative and qualitative information about unobservable inputs in Level 3 measurements and leveling for financial instruments not carried at fair value in the financial statements. Upon adoption, there were no effects on the Company’s fair value measurements. See Note 11 for expanded fair value disclosures. Presentation of Comprehensive Income.  Effective January 1, 2012, the Company adopted the FASB’s amended guidance (ASU 2011-05) that requires presenting net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive statements. Neither measurement of comprehensive income nor disclosure requirements for reclassification adjustments between other comprehensive income and net income were affected by this amended guidance. The Company has elected to present a separate statement of comprehensive income following the statement of income and has retrospectively adjusted prior periods to conform to the new presentation, as required. Amendments to Fair Value Measurement and Disclosure.  Effective January 1, 2012, the Company adopted the FASB’s amended guidance on fair value measurement and disclosure (ASU 2011-04) on a prospective basis. A key objective was to achieve common fair value measurement and disclosure requirements between U.S. GAAP and IFRS. The amended guidance changes certain fair value Troubled debt restructurings.  Effective July 1, 2011, the Company adopted the FASB’s updated guidance (ASU 2011-02) to clarify for lenders that a troubled debt restructuring occurs when a debt modification is a concession to the borrower and the borrower is experiencing financial difficulties. This guidance was required to be applied retrospectively for restructurings occurring on or after January 1, 2011. The amendment also required new disclosures to be provided beginning in the third quarter of 2011 addressing certain troubled debt restructurings. Adoption of the new guidance did not have a material effect to the Company’s results of operations or 70 CIGNA CORPORATION -  2012 Form  10-K