1 Press Release INVESTOR RELATIONS Will McDowell CONTACT: 215- 761- 4198 [email protected] MEDIA CONTACT: Ellie Polack 860- 902- 4906 [email protected] , Raises Outlook Results 2019 First Quarter Cigna Delivers Strong 1 . Adjusted revenues were $ 33 .4 billion . Total revenues in the first quarter • $37.9 billion were , or $3 per share • Shareholders’ net income for the first quarter was $1 .37 billion .56 2 Adjusted income from operations • per share $1.5 billion, or $ was for the first quarter 3.90 2,3,4 • Adjusted income from operations 6.24 is .4 billion in 2019 projected to be in the range of $ billion to $6 , or now 3 % over 2018 , which represents per share growth of 14% to 17 $16. e 25 to $16 .65 per shar strong – Global health service company BLOOMFIELD, CT, May 2 , 2019 Cigna Corporation (NYSE: CI) today reported Medical segments Health Services and Integrated led by the results first quarter 2019 . and “Cigna's first quarter performance reflects focused execution of our proven growth strategy positions us well to achieve our increased “Our combination outlook for 2019,” said David M. Cordani, President and Chief Executive Officer. the benefit of our customers and patients, as we with Express Scripts is fueling additional innovative programs for our efforts to improve the affordability of health care.” accelerate 1 billion and reflect strong were $33.4 . Adjusted revenues Total revenues for first quarter 201 7.9 billion 9 were $3 . ongoing businesses contributions from each of Cigna's per share, compared with $0.9 billion , or $3 .72 Shareholders’ net income for first quarter 2019 was $ 1.37 billion, or $3 .56 per share, for first quarter 2018 . 2 1.5 billion, or $3 .0 was $ 2019 first quarter .90 for per share, compared with $1 operations Cigna's adjusted income from earnings led by the Health Services and Integrated contributions billion, or $ 4.11 per share, for 2018 . This reflects strong Medical segments. 1 and of shareholders’ net income to adjusted income from Reconciliations of total revenues to adjusted revenues 2 1 of this earnings release. are provided on the following page, and on Exhibit operations
2 2 CONSOLIDATED HIGHLIGHTS 1 and reconciliation total revenues to adjusted The following table includes highlights of results and revenues s of 2 : adjusted income from operations shareholders’ net income to (dollars in millions): Consolidated Financial Results Three Months Ended , March 31, December 3 1 8 9 201 201 2018 $ 37 , 946 $ 11 , 413 Total Revenues $ 1 4 , 300 Net Investment Losses (Gains ) from Realized 2 (28) 20 1 quity Investments M E ethod s and Transitioning Client Item Special 1 (4,489) - Contribution ( 569 ) s 1 $ Adjusted 33 , 42 Revenues $ 11 , 415 $ 1 3 , 751 9 Consolidated Earnings, net of taxes Shareholders’ Net Income $ 1,3 68 $ 915 $ 144 2 Net Realized Investment Losses ( 38 ) 25 58 (Gains) 2 Assets 56 4 103 Amortization of Other Acquired Intangible 20 Item s and Transitioning Client Special 1,2 s (396) Contribution 50 342 2 Operations $ 1, 49 8 $ Adjusted Income from 1,010 $ 647 Shareholders’ Net Income, per share $ 3 . 56 $ 3 . $ 0 . 55 72 2 , per share Adjusted Income from $ 3 . 90 $ 4 . 11 $ 2 . 46 Operations • Year to date through May 1, 201 9, the Company repurchased 3.1 million shares of common stock for approximately million $556 . • The debt to capitalization ratio improved to 4 8.8% at March 31, 2019 from 50.9% at December 31, 2018. 5 first quarter was 9. 3% for 2019 , a significant decrease from 23. 5% for first quarter 2018 ratio SG&A expense • The driven by business mix changes resulting from t he Express Scripts combination, and the health insurance tax suspension.
3 3 CUSTOMER RELATIONSHIPS The following table summarizes our medical customers and overall customer relationships: (in thousands): Customer Relationships As of the Periods Ended March 31, Dec ember 3 1 , 201 9 8 2018 201 825 14 , 016 , 13, 982 Commercial 13 1 , 405 Government 1 , 389 1,40 7 International Markets 1 , 572 1 , 555 1, 572 6 , 16 , 993 16 Total Medical Customers 769 16, 961 6 74 , 935 8 , 796 Pharmacy 73 , 230 6 Behavioral Care 28 , 046 26 , 998 27, 215 , 17 , 122 16 Dental 521 16, 5 44 Medicare Part D 3 , 302 3,295 784 6,7 12, 12 , 576 12 , 061 International Markets Supplemental Policies 569 6 , 1 5 , 200 15 Group Disability and Life 300 14 , 800 Covered Lives Total Customer Relationships 16 8 , 174 97 , 229 164 , 614 6 million, an organic increase of 32,000 customers year at first quarter 2019 was 17 The total medical customer base • to date and 224,000 over first quarter 2018 driven by growth in the Select and Middle Market segments, partially . offset by a decline in National Accounts 6 at first quarter 2019 was 75 million, an organic increase of 1.7 million customers year The pharmacy customer base • to date, driven by strong new sales. commercial 6 include s in the first quarter 2019 and fourth quarter 2018 and Medicare Part D customer customers Pharmacy • gained through the completion of the Express Scripts combination on December 20, 2018.
4 4 HIGHLIGHTS OF SEGMENT RESULTS 2 to shareholders’ net income. 1 for a reconciliation of adjusted income (loss) from operations See Exhibit Health Services specialty pharmacy This segment includes a broad range of pharmacy services, including benefits management, management services. services, clinical solutions, home delivery, and health Financial Results (dollars in millions): Three Months Ended March 31, Dec ember 3 , 1 201 9 201 8 2018 1 $ $ 22,460 $ 1,071 Adjusted Revenues 3 , 313 2 Adjusted Income from Operations, Pre - $ 994 $ 83 $ 153 Tax 8 - Adjusted Margin, Pre 4.4 % 7.7 % Tax 4 . 6 % • Cigna completed the combination with Express Scripts on December 20, 2018. Accordingly, contributions from the Express Scripts business are reflected in the Health Services segment results for the entire first quarter 2019, a portion of fourth quarter 2018, and are not reflected in first quarter 2018 results. 2 1 tax and adjusted income from operations, pre- were driven by revenues quarter 201 Growth in first • 9 adjusted the combination with Express Scripts. 9 in first quarter 2019, consistent with the • Health Services fulfilled 292 million adjusted pharmacy scripts company’s expectations. • Health Services delivered solid results in first quarter 201 9, driven by organic growth in pharmacy customers since the start of the year, and strong adjusted pharmacy script volumes and performance in specialty pharmacy care.
5 5 Integrated Medical provide comprehensive medical This segment includes Cigna’s U.S. that Commercial and Government businesses behavioral solutions to clients and customers . U.S. Commercial products and services include medical, pharmacy, health, dental, vision, health advocacy programs and other products and services to insured and self -insured customers. seniors , Medicare Advantage, Medicare solutions include Government Supplement, and Medicare Part D plans for Medicaid plans , and individual health insurance coverage both on and off the public exchanges. Financial Results (dollars in millions): Three Months Ended March 3 1, Dec ember 3 , 1 9 201 8 201 8 201 1 $ Adjusted Revenues 9 , 195 $ 8 , $ 8, 297 150 2 Operations , Pre - Tax $ 1,170 $ Adjusted Income from 1,012 $ 643 8 Adjusted Margin, Tax Pre 12 . 7 % 12 . 4 % 7 . 7 % - strong result s in first quarter 2019 , led by organic growth and strong margins in our delivered Integrated Medical • overnment business es. Commercial and G 1 increased 13 % relative to first quarter 2018 , driven by Commercial First quarter 201 9 adjusted revenues • customer growth and expansion of specialty relationships, as well as premium increases consistent with underlying cost trends. 8 2 and adjusted margin, pre- tax reflect strong medical First quarter adjusted income from operations • , pre- tax 2019 and and specialty contributions continued effective medical cost performance. 2 9 and included favorable net first quarter 201 first quarter 2018 for tax Adjusted income from operations • , pre- on a pre- tax basis prior year reserve development million and $51 million, respectively . of $50 5 (“MCR”) of 78. 9% for first quarter 2019 reflect s strong performance and execution in our • ratio The medical care and government business es and favorable prior year development, partially offset by the addition of commercial pricing effect of the health insurance tax the Express Scripts Medicare Part D business and the suspension. 10 billion 2.72 billion at March 31, 2019 , $2.41 was approximately $ Integrated Medical net medical costs payable • at March 31, 201 8 and $2.43 billion at December 31, 2018 .
6 6 International Markets coverage and products and health care insurance in our health, accident This segment includes supplemental life as health care benefits for globally mobile employees of multinational international . markets , as well organizations in thousands): Financial Results (dollars in millions, policies and customers Three Months Ended March , December 3 1 , 31 201 9 201 8 201 8 1,7 Revenues $ 1,394 $ 1,341 $ 1,355 Adjusted 2 -Tax 217 $ 206 $ Adjusted Income from Operations $ 120 , Pre 8 -Tax Adjusted Margin, 14. 8% 16.2% 8.9% Pre As of the Periods Ended 1 , December 3 31 , March 201 9 201 8 201 8 6,7 Supplemental Policies 12 , 5 76 12 , 061 12, 569 International Markets 6 International Markets Medical Customers 1 , 5 5 5 1, 572 1 , 572 1,7 growth business continued , reflecting quarter 2018 first , grew 4% over revenues quarter First • 201 9 adjusted . partially offset by some impact from unfavorable foreign currency movements 8 2 business growth, tax pre- and adjusted margin, reflect , pre -tax adjusted income from 2019 quarter First • operations and spending to strengthen our capabilities to further long- term offset by unfavorable foreign currency impacts growth .
7 7 Group Disability and Other Operations Life term and short -term disability, This segment includes Cigna’s Group Disability and business which offers group long- , this segment includes and specialty insurance products and services. Additionally and group life, accident , voluntary Corporate Owned Life Insurance (“COLI”) and the Company’s run- off operations. Financial Results (dollars in millions): Three Months Ended 31 , December March 1 , 3 201 201 8 9 201 8 1 $ 1,296 $ 1,271 $ 1,246 Adjusted Revenues 2 $ 84 $ 116 , Pre $ 109 -Tax Adjusted Income from Operations 8 -Tax 6.5% 9.1% Adjusted Margin, 8.7% Pre 8 2 and adjusted margin, pre- unfavorable tax reflect from , pre- tax income • 9 adjusted quarter First operations 201 disability claims partially offset by strong life results . Corporate Corporate reflects amounts not allocated to operating segments and includes intersegment interest expense, as well as eliminations. millions): Financial Results (dollars in Three Months Ended March 31 , December 3 1 , 201 9 201 8 201 8 2 - Tax $ ( 490 ) $ Adjusted (Loss) from Operations, Pre ( 92 ) $ ( 148 ) 2 increased as a result of higher interest expense The first quarter 2019 adjusted loss from operations , pre- tax • associated with the financing of the combination with Express Scripts.
8 8 2019 OUTLOOK 2,3,4 $6.24 billion to $6 .4 is in the range of consolidated adjusted income from operations Cigna's outlook for full year 2019 to $16 .65 per share. Cigna’s outlook excludes the impact of additional prior year reserve development billion, or $16. 25 4 . and of medical costs repurchase potential effects of any future share Projection for Full - Change (dollars in millions, except where noted and per share amounts) from Prior Year Ending Projection December 31, 2019 2019 Consolidated Operating Metrics 2,3,4 $ 6,240 to 6,400 $ + 0 to 40 Adjusted Income from Operations 2,3,4 $ 16.25 to 16.65 $ + 0.15 to + 0.25 Adjusted Income from Operations, per share 1,3 $ $ + 1,000 , 500 to 134 , 500 132 Revenue Adjusted s 5 % to 10 . 0 10 . 5 % Expense Ratio SG&A 11 23 . 5 % to 24 . 5 % Adjusted Tax Rate Segment Metrics Level Operating - 2019 2,3,4 Adjusted Income from Operations - Tax , Pre $ 5 , 050 to 5 , 200 Health Services + 0 to 50 $ 3 , 700 to 3 , 800 $ Integrated Medical 9 1 . to 1 . 19 billion 17 Health Services Adjusted Pharmacy Script s – 6 300,000 to 400,000 cu stomers Medical Customer Growth 5 80 . 5 % to 81 . 5 % Medical Care Ratio 12 3 . % to 4 . 5 % 5 Medical Cost Trend 2020 OUTLOOK Health Services ’ projected 2020 retention rate for the 2019 selling season for pharmacy services is in the range of 96% to 98% .
9 9 The foregoing statements represent the Company’s current estimates of Cigna's 2019 consolidated and segment 2,3,4 and other key metrics as of the date of this release. Actual results may differ adjusted income from operations - materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward Looking Statements included in this release. Management does not assume any obligation to update these estimates. This quarterly earnings release and the Quarterly Financial Supplement are available on Cigna’s website in the Investor Relations section (http://www.cigna.com/aboutcigna/investors). Management will be hosting a conference call to review 2019 results and discuss full year 2019 outlook beginning today at 8: first quarter 30 a.m. ET. A link to the conference call is available in the Investor Relations section of Cigna's website located at https://www.cigna.com/aboutcigna/investors/events/index.page. all- in numbers for the conference call are as follows: The c Live Call ( 888) 324- 7575 (Domestic) ( 0013 (International) 210) 234- Passcode: 2019 502 Replay ( 800) 839- 5571 (Domestic) ( 220- 2073 (International) 402) :15 a.m. ET. It is strongly suggested you dial in to the conference call by 8 About Cigna Cigna Corporation (NYSE: CI) is a global health service company dedicated to improving the health, well -being and peace of those we serve. Cigna delivers choice, predictability, affordability and of mind access to quality care through integrated capabilities and connected, personalized solutions that advance whole person health. All products and services are through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance provided exclusively by or Cigna Life Insurance Company of New York, Connecticut General Life Insurance Company, Express Scripts Company, companies or their affiliates, and Life Insurance Company of North America. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, ity insurance. and other related products including group life, accident and disabil Cigna maintains sales capability in over 30 countries and jurisdictions, and has more than 160 million customer ® , including links to follow us on Facebook or Twitter, visit relationships throughout the world. To learn more about Cigna . www.cigna.com Notes: 1. At the consolidated level, the measure “ revenues” is not determined in accordance with GAAP adjusted and should not be viewed as a substitute for the most directly comparable GAAP measure, “total revenues.” We define adjusted revenues as total revenues excluding revenue contributions from transitioning pharmacy benefit management clients , Anthem Inc. and Coventry Health Care, Inc . (the “transitioning clients”), net realized investment results from equity method investments, and special from this measure because they not indicative of past or future items. We exclude these items are underlying performance of the business. See Exhibit 1 for a reconciliation of consolidated adjusted revenues to total revenues. 2. Adjusted income (loss) from operations is defined as shareholders’ net income (loss) excl uding the following adjustments: earnings contributions from transitioning clients, net realized investment results, amortization of acquired intangible assets special items. Special items are identified in Exhibit 1 of , and this earnings release. Adjusted income (loss) from operations is measured on an after -tax basis for consolidated results and on a pre -tax basis for segment results.
10 10 Adjusted income (loss) from operations is a measure of profitability used by Cigna’s management because it presents the underlying results of operations of Cigna’s businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. This consolidated measure is not determined in accordance with accounting principles generally accepted in the United States (GAAP) and should not be viewed as a substitute for the most directly comparable GAAP measure, shareholders’ net incom e. See Exhibit 1 for a reconciliation of adjusted income from operations to shareholders’ net income. Effective in the fourth quarter of 2018, Cigna updated its segments. Refer to our Current Report on Form 8-K filed and our Annual Report on with the Securities and Exchange C ommission on January 23, 2019 for additional information and prior period results on -K for the year ended December 31, 2018 Form 10 the historic and new segment bases. of adjusted income from operations 3. Management is not able to provide a reconciliation to shareholders’ -looking basis because we are net income (loss) or adjusted revenues to total revenues on a forward unable to predict, without unreasonable effort, certain components thereof including (i) future net reali zed investment results (from equity method investments with respect to adjusted revenues) and (ii) future special items. These items are inherently uncertain and depend on various factors, many of mate and its impact on shareholders’ net which are beyond our control. As such, any associated esti income could vary materially. 4. The Company’s outlook excludes the potential effects of any share repurchases or business combinations that may occur after the date of this earnings release. 5. Operating ratios are d efined as follows: Medical care ratio represents medical costs as a percentage of premiums for all U.S. commercial • risk products, including medical, pharmacy, dental, stop loss and behavioral products provided -rated through guaranteed cost or experience funding arrangements, as well as Medicare Advantage, Medicare Part D, Medicare Supplement, Medicaid, and individual on and off- exchange products , within our Integrated Medical segment. SG&A expense ratio represents enterprise selling, general and administ rative expenses • special items and expenses from transitioning clients, excluding as a percentage of adjusted revenue at a consolidated level. 6. Customer relationships are defined as follows: Total medical customers includes individuals • Integrated Medical and International Markets in our segment s who meet any one of the following criteria: are covered under a medical insurance policy, managed arrangement, or service agreement issued by Cigna; have access to care 's provider medical for covered services under their medical plan; or have Cigna claims network services are and administered by Cigna. that Pharmacy customer relationships excludes transitioning clients. • • exclude International Ma rkets medical customers included in total International Markets policies medical customers. • Group Disability and Life covered lives are estimated. 7. Cigna owns a 50% noncontrolling interest in its China joint venture. Cigna's 50% share of the joint venture’s earnings is reported in Fees and Other Revenues using the equity method of accounting under adjusted revenues and policy counts for the International Markets segment do not GAAP. As such, the include the China joint venture. 8. Adjusted margin, pre -tax, is calculated by dividing adjusted income (loss) from operations , pre -tax by adjusted revenues for each segment. 9. For Health Services adjusted pharmacy -specialty network scripts filled through 90 -day scripts, non scripts are multiplied by three. All other network and specialty scripts are programs and home delivery counted as one script . Adjusted pharmacy scripts guidance does not include script volumes associated with transitioning clients, nor volumes expected to be insourced from OptumRx under the terms of the transition services agreement.
11 11 Medical costs payable within the Integrated Medical segment are presented net of reinsurance and other 10. $2.70 recoverables. The gross medical costs payable balance was $2.96 billion as of March 31, 2019, 31, 2018. The Integrated Medical days billion as of March $2.64 billion as of December 31, 2018, and claims payable was 40.9 days at March 31, 2019, 40.7 days at December 31, 2018 and 41.9 days at March 31, 2018. 11. The measure “ adjusted tax rate” is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, “ consolidated effective tax rate.” We the consolidated define ompany’s pre -tax income adjusted tax rate as income tax rate applicable to the C , and excluding net realized investment results, amortization of acquired intangible assets , special items consolidated effective tax transitioning clients the . Management is not able to provide a reconciliation to -looking basis because we are unable to predict, without unreasonable effort, certain rate on a forward future special items. components thereof including (i) future net realized investment results and (ii) 12. Medical cost trend includes all U.S. commercial employer funding arrangements. CAUTIONARY NOTE REGARDING FORWARD- LOOKING STATEMENTS This press release, and oral statements made with respect to information contained in this release, may contain forward- looking statements looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- are based on Cigna's current expectations and projections about future trends, events and uncertainties. These erning our statements are not historical facts. Forward- looking statements may include, among others, statements conc projected adjusted income (loss) from operations outlook for 2019, on both a consolidated and segment basis; projected adjusted revenue outlook for 2019; projected global medical customer growth over year end 2018; projected growth ; projected term projected adjusted income (loss) from operations outlook beyond 2019; statements concerning our long- medical care and SG&A expense ratios and medical cost trends; projected adjusted pharmacy s; our projected script consolidated adjust ed tax rate; future financial or operating performance, including our ability to deliver affordable, personalized and innovative solutions for our customers and clients; future growth, business strategy, strategic or operational initiatives; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; the merger (the “Merger”) with Express Scripts Holding Company (“Express and other statements regarding Cigna's future beliefs, expectations, plans, intentions, financial condition or Scripts”) looking statements by the use of words such as “believe,” “expect,” “plan,” performance. You may identify forward- “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar looking statements contain meaning, although not all forward- such terms. tatements are subject to risks and uncertainties, both known and unknown, that could cause actual Forward -looking s risks and uncertainties results to differ materially from those expressed or implied in forward- looking statements. Such but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our include, ability to predict manage medical and pharmacy costs and price effectively; our ability to adapt to changes or trends in an and our evolving changing industry; our ability to effectively differentiate rapidly products and services from those of our and competitors and maintain or increase market share; our ability to develop and maintain good relationships with physicians, hospitals, other care providers and pharmaceutical manufacturers; changes in drug pricing; the impact of health potential to our processes; our ability to identify and strategic acquisitions or transactions and modifications operations the expected benefits (including anticipated synergies) of such transactions in full or within the anticipated time realize including with respect to the Merger, as well as our ability to integrate operations, resources and systems; the frame, the substantial regulation over our business and el of government potential effects of new laws or regulations or lev changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions and/or guaranty fund assessments; surrounding participation in government -sponsored programs such as Medicare; the uncertainties business security of our information technology and other and systems; the impact of our debt service effectiveness obligations on the availability of funds for other business purposes; unfavorable industry, economic or political conditions, terrorism, including movements; acts of war, currency natural disasters or pandemics; as well as more specific foreign risks and uncertainties discussed in our most recent report on F orm 10- K and subsequent reports on Forms 10- Q and 8- K available on the Investor Relations section of www.cigna.com. You should not place undue reliance on forward- looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward- looking statement, whether as a result of new information, future events or otherwise, except as may be required by law .
12 Exhibit 1 CIGNA CORPORATION COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited ) (Dollars in millions, except per share amounts) Three Months Ended Three Months Ended March 31, December 31, 2018 2018 2019 REVENUES Pharmacy revenues 3,257 $ 25,179 $ 717 $ Premiums 8,999 9,971 9,108 Fees and other revenues 1,491 1,368 2,450 Net investment income including special items 329 444 346 Total revenues 11,413 37,946 14,300 Revenue contributions from transitioning clients (459) (4,489) - hod subsidiaries Net realized investment (gains) losses from equity met 2 20 (28) Special items reported in integration and transaction- related costs (110) - - (1) Adjusted revenues $ 11,415 $ 33,429 $ 13,751 SHAREHOLDERS' NET INCOME Shareholders' net income 144 $ 1,368 $ 915 $ After-tax adjustments to reconcile to adjusted income from oper ations: Adjustment for transitioning clients (504) - (47) Net realized investment (gains) losses 25 (38) 58 Amortization of acquired intangible assets 564 103 20 Special items Integration and transaction-related costs 108 402 50 Charges associated with litigation matters (16) - - U.S. tax reform - - 3 (2) Adjusted income from operations $ 647 $ $ 1,498 1,010 Pre-tax adjusted income (loss) from operations by segment Health Services $ 153 $ 994 $ 83 Integrated Medical 1,170 1,012 643 International Markets 120 206 217 Group Disability and Other 109 84 116 Corporate (92) (490) (148) (2) Consolidated pre-tax adjusted income from operations 877 1,964 1,336 Adjusted income tax expense (466) (230) (326) (2) Consolidated after-tax adjusted income from operations 647 1,498 $ $ $ 1,010 E DILUTED EARNINGS PER SHAR Shareholders' net income 3.72 $ 3.56 $ $ 0.55 After-tax adjustments to reconcile to adjusted income from oper ations: Adjustment for transitioning clients (0.18) (1.31) - Net realized investment (gains) losses (0.10) 0.10 0.22 Amortization of other acquired intangible assets 0.39 0.08 1.47 Special items Integration and transaction-related costs 1.53 0.21 0.28 Charges associated with litigation matters (0.06) - - U.S. tax reform - - 0.01 (2) Adjusted income from operations $ 3.90 $ 4.11 $ 2.46 (in thousands) Weighted average shares 263,521 245,788 384,024 Common shares outstanding (in thousands) 243,250 380,270 380,924 $ $ SHAREHOLDERS' EQUITY at March 31, 42,408 14,195 $ $ SHAREHOLDERS' EQUITY PER SHARE at March 31 , 58.36 111.52 (1) Adjusted revenues is defined as total revenues excluding the following adjustments: revenue contributions from transition ing clients, special items e excluded because they and Cigna's share of certain realized investment results of its joint ventures reported using the equity method. These items ar are not indicative of past or future underlying performance of our businesses. ustments: realized (2) Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adj investment results, amortization of acquired intangible assets, special items and earnings contributions from transitioning cli ents.