Company: CI
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001739940-25-000021
Chunk: 247

Company: Cigna Group
Filing Date: 2025-05-02
Form: 10-Q
Item: Part II, Item 14
Chunk 247
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Note 14 – Strategic Optimization ProgramIn 2025, the Company commenced an enterprise-wide initiative to evolve our business and deliver a more efficient and improved experience for our patients, providers and customers. This program is expected to continue through December 2026 and include severance and other employee costs, accelerated asset amortization, and the operating results of certain small non-strategic businesses that we plan to discontinue. As we continue to evaluate additional opportunities to improve the overall efficiency and effectiveness of our operations, we anticipate future charges.During the three months ended March 31, 2025, we reported total costs of $215 million, pre-tax ($163 million, after-tax) associated with this initiative, including a charge in Selling, general and administrative expenses of $198 million, pre-tax ($150 million, after-tax) that was primarily associated with employee severance. The remainder reflects the operating results of certain non-strategic businesses. We expect substantially all of the accrued liability to be paid by the end of 2025.The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities during the three months ended March 31, 2025:(In millions)Balance, December 31, 2024$— First quarter 2025 charge171 2025 payments(10)Balance, March 31, 2025$161