PART II ITEM 8 Financial Statements and Supplementary Data The Company may redeem these Notes, at any time, in whole or in part, at a redemption price equal to the greater of: $198 million, including accrued interest and expenses, to settle the Notes, resulting in an after-tax loss on early debt extinguishment of $18 million. During 2011, the Company repaid $449 million in maturing long-term debt. In the fourth quarter of 2010, the Company entered into the following transactions related to its long-term debt: Maturities of debt and capital leases are as follows (in millions): $1 in 2013, $23 in 2014, none in 2015, $600 in 2016, $250 in 2017 and the remainder in years after 2017. Interest expense on long-term debt, short-term debt and capital leases was $268 million in 2012, $202 million in 2011, and $182 million in 2010. The Company was in compliance with its debt covenants as of December  31,  2012. In May 2010, the Company issued $300 million of 5.125% Notes ($299 million, net of debt discount, with an effective interest rate of 5.36% per year). Interest is payable on June 15 and December 15 of each year beginning December 15, 2010. These Notes will mature on June 15, 2020. The proceeds of this debt were used for general corporate purposes. The Company may redeem the Notes issued in 2010 at any time, in whole or in part, at a redemption price equal to the greater of: As of December 31, the Company had issued the following shares: Common and Preferred Stock NOTE 17 112 CIGNA CORPORATION -  2012 Form  10-K On November 16, 2011, the Company issued 15.2 million shares of its common stock at $42.75 per share. Proceeds of $650 million ($629 million net of underwriting discount and fees) were used to partially fund the HealthSpring acquisition in January 2012. The Company maintains a share repurchase program, which was authorized by its Board of Directors. The decision to repurchase shares depends on market conditions and alternative uses of capital. The Company has, and may continue from time to time, to repurchase shares on the open market through a Rule 10b5-1 plan that permits a company to repurchase its shares at times when it otherwise might be precluded from doing so under insider trading laws or because of self-imposed trading blackout periods. During 2012, and through February 28, 2013, the Company repurchased 4.4 million shares for $208 million. On February 27, 2013, the Company’s Board of Directors increased share repurchase authority by $500 million. Accordingly, the total remaining share repurchase authorization as of February 28, 2013 was $815 million. The Company repurchased 5.3 million shares for $225 million during 2011. The Company has authorized a total of 25 million shares of $1 par value preferred stock. No shares of preferred stock were outstanding at December 31, 2012 or 2011. (Shares in thousands) 2012 2011 Common: Par value $0.25 600,000 shares authorized Outstanding – January 1 285,533 271,880 Issuance of common stock - 15,200 Issued for stock option and other benefit plans 4,695 3,735 Repurchase of common stock (4,399) (5,282) Outstanding – December 31 285,829 285,533 Treasury stock 80,316 80,612 ISSUED – DECEMBER 31 366,145 366,145 100% of the principal amount of the Notes to be redeemed; or GLYPH<127> the present value of the remaining principal and interest payments on the Notes being redeemed discounted at the applicable Treasury rate plus 20 basis points (10-Year 4.5% Notes due 2021) or 25 basis points (30-Year 5.875% Notes due 2041). GLYPH<127> In December 2010 the Company offered to settle its 8.5% Notes due 2019, including accrued interest from November 1 through the settlement date. The tender price equaled the present value of the remaining principal and interest payments on the Notes being redeemed, discounted at a rate equal to the 10-year Treasury rate plus a fixed spread of 100 basis points. The tender offer priced at a yield of 4.128% and principal of $99 million was tendered, with $251 million remaining outstanding. The Company paid $130 million, including accrued interest and expenses, to settle the Notes, resulting in an after-tax loss on early debt extinguishment of $21 million. GLYPH<127> In December 2010 the Company offered to settle its 6.35% Notes due 2018, including accrued interest from September 16 through the settlement date. The tender price equaled the present value of the remaining principal and interest payments on the Notes being redeemed, discounted at a rate equal to the 10-year Treasury rate plus a fixed spread of 45 basis points. The tender offer priced at a yield of 3.923% and principal of $169 million was tendered, with $131 million remaining outstanding. The Company paid GLYPH<127> In December 2010, the Company issued $250 million of 4.375% Notes ($249 million net of debt discount, with an effective interest rate of 5.1%). Interest is payable on June 15 and December 15 of each year beginning December 15, 2010. These Notes will mature on December 15, 2020. The proceeds of this debt were used to fund the tender offer for the 8.5% Senior Notes due 2019 and the 6.35% Senior Notes due 2018 described above. GLYPH<127> 100% of the principal amount of the Notes to be redeemed; or GLYPH<127> the present value of the remaining principal and interest payments on the Notes being redeemed discounted at the applicable Treasury rate plus 25 basis points. GLYPH<127>