Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 88

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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) and $(3), respectively65 (5)78 (31)Ending balance$(120)$(180)$(120)$(180)Postretirement benefits liabilityBeginning balance$(931)$(910)$(937)$(915)Amounts reclassified to Shareholders' net income, net of tax (benefit) of $(2), $—, $(4) and $(3), respectively6 7 12 12 Net change due to valuation update, before reclassification, net of tax benefit of $3, $4, $3 and $4, respectively(9)(16)(9)(16)Other comprehensive (loss) income, net of tax(3)(9)3 (4)Ending balance$(934)$(919)$(934)$(919)Total Accumulated other comprehensive lossBeginning balance$(2,590)$(2,324)$(2,341)$(1,864)Shareholders' other comprehensive loss, net of tax benefit of $105, $42, $187 and $183, respectively(226)(118)(475)(578)Ending balance$(2,816)$(2,442)$(2,816)$(2,442)

Note 14 – Strategic Optimization ProgramIn the first quarter of 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, asset impairments and 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 and six months ended June 30, 2025, we reported total costs of $129 million, pre-tax ($98 million, after-tax) and $344 million, pre-tax ($261 million, after-tax), respectively, associated with this initiative. During the three months ended June 30, 2025, the total costs included a charge in Selling, general and administrative ("SG&A") expenses of $88 million, pre-tax, that was primarily comprised of asset impairments. During the six months ended June 30, 2025, the total costs included a charge in SG&A expenses of $286 million, pre-tax, that was primarily associated with employee severance. The remainder for both periods reflects the operating results of certain non