PART II ITEM 8 Financial Statements and Supplementary Data Earnings Per Share NOTE 4 Basic and diluted earnings per share were computed as follows: Effect of (Dollars in millions, except per share amounts) Basic Dilution Diluted 2012 Shareholders’ net income $ 1,623 $ - $ 1,623 Shares  (in thousands): Weighted average 284,819 - 284,819 Common stock equivalents 4,711 4,711 Total shares 284,819 4,711 289,530 EPS $ 5.70 $ (0.09) $ 5.61 2011 Shareholders’ net income $ 1,260 $ - $ 1,260 Shares  (in thousands): Weighted average 270,691 - 270,691 Common stock equivalents 3,558 3,558 Total shares 270,691 3,558 274,249 EPS $ 4.65 $ (0.06) $ 4.59 2010 Shareholders’ net income $ 1,279 $ - $ 1,279 Shares  (in thousands): Weighted average 272,866 - 272,866 Common stock equivalents 2,421 2,421 Total shares 272,866 2,421 275,287 EPS $ 4.69 $ (0.04) $ 4.65 (In millions) 2012 2011 2010 Antidilutive options 2.5 3.7 6.3 The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect would have increased diluted earnings per share (antidilutive) as their exercise price was greater than the average share price of the Company’s common stock for the period. Medical claims payable for the Global Health Care segment reflects estimates of the ultimate cost of claims that have been incurred but not yet reported, those which have been reported but not yet paid (reported claims in process) and other medical expense payable, which comprises accruals primarily for provider incentives and other amounts payable to providers. As discussed further in Notes 2 and 23¸ effective December 31, 2012, Cigna changed its external reporting segments. The Global Health Care segment now includes most of Cigna’s international health care business (primarily the global health benefits business previously reported in the former International segment). As a result of the segment reporting change, insurance liabilities of the international health care business previously classified as Unpaid Claims have been reclassified to Global Health Care Medical Claims Payable in the Consolidated Balance Sheets, and corresponding amounts in the Statement of Income previously reported as Other Benefits Expense have been reclassified to Global Health Care Medical Claims Expense. Prior year amounts have been conformed to this new presentation. Global Health Care Medical Claims Payable NOTE 5 CIGNA CORPORATION -  2012 Form  10-K 81