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Share Name | Share Symbol | Market | Type |
---|---|---|---|
UnitedHealth Group Inc | NYSE:UNH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.52 | -0.11% | 492.45 | 492.785 | 485.78 | 491.96 | 2,487,813 | 01:00:00 |
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[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
41-1321939
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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UnitedHealth Group Center
9900 Bren Road East
Minnetonka, Minnesota
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55343
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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[X]
|
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Accelerated filer
|
[ ]
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Non-accelerated filer
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[ ]
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Smaller reporting company
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[ ]
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Page
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(in millions, except per share data)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
10,596
|
|
|
$
|
10,923
|
|
Short-term investments
|
|
2,418
|
|
|
1,988
|
|
||
Accounts receivable, net
|
|
7,777
|
|
|
6,523
|
|
||
Other current receivables, net
|
|
6,865
|
|
|
6,801
|
|
||
Assets under management
|
|
2,878
|
|
|
2,998
|
|
||
Prepaid expenses and other current assets
|
|
3,211
|
|
|
2,406
|
|
||
Total current assets
|
|
33,745
|
|
|
31,639
|
|
||
Long-term investments
|
|
20,895
|
|
|
18,792
|
|
||
Property, equipment and capitalized software, net
|
|
4,976
|
|
|
4,861
|
|
||
Goodwill
|
|
46,294
|
|
|
44,453
|
|
||
Other intangible assets, net
|
|
8,861
|
|
|
8,391
|
|
||
Other assets
|
|
3,084
|
|
|
3,118
|
|
||
Total assets
|
|
$
|
117,855
|
|
|
$
|
111,254
|
|
Liabilities, redeemable noncontrolling interests and equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Medical costs payable
|
|
$
|
15,823
|
|
|
$
|
14,330
|
|
Accounts payable and accrued liabilities
|
|
13,740
|
|
|
11,994
|
|
||
Other policy liabilities
|
|
8,317
|
|
|
7,798
|
|
||
Commercial paper and current maturities of long-term debt
|
|
6,504
|
|
|
6,634
|
|
||
Unearned revenues
|
|
1,901
|
|
|
2,142
|
|
||
Total current liabilities
|
|
46,285
|
|
|
42,898
|
|
||
Long-term debt, less current maturities
|
|
27,218
|
|
|
25,331
|
|
||
Future policy benefits
|
|
2,508
|
|
|
2,496
|
|
||
Deferred income taxes
|
|
3,066
|
|
|
3,587
|
|
||
Other liabilities
|
|
1,887
|
|
|
1,481
|
|
||
Total liabilities
|
|
80,964
|
|
|
75,793
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
|
1,824
|
|
|
1,736
|
|
||
Equity:
|
|
|
|
|
||||
Preferred stock, $0.001 par value - 10 shares authorized; no shares issued or outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value - 3,000 shares authorized; 954 and 953 issued and outstanding
|
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
|
—
|
|
|
29
|
|
||
Retained earnings
|
|
37,963
|
|
|
37,125
|
|
||
Accumulated other comprehensive loss
|
|
(2,804
|
)
|
|
(3,334
|
)
|
||
Nonredeemable noncontrolling interest
|
|
(102
|
)
|
|
(105
|
)
|
||
Total equity
|
|
35,067
|
|
|
33,725
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
|
$
|
117,855
|
|
|
$
|
111,254
|
|
|
|
Three Months Ended March 31,
|
||||||
(in millions, except per share data)
|
|
2016
|
|
2015
|
||||
Revenues:
|
|
|
|
|
||||
Premiums
|
|
$
|
34,811
|
|
|
$
|
31,674
|
|
Products
|
|
6,393
|
|
|
1,230
|
|
||
Services
|
|
3,140
|
|
|
2,706
|
|
||
Investment and other income
|
|
183
|
|
|
146
|
|
||
Total revenues
|
|
44,527
|
|
|
35,756
|
|
||
Operating costs:
|
|
|
|
|
||||
Medical costs
|
|
28,430
|
|
|
25,790
|
|
||
Operating costs
|
|
6,758
|
|
|
5,834
|
|
||
Cost of products sold
|
|
5,877
|
|
|
1,114
|
|
||
Depreciation and amortization
|
|
502
|
|
|
378
|
|
||
Total operating costs
|
|
41,567
|
|
|
33,116
|
|
||
Earnings from operations
|
|
2,960
|
|
|
2,640
|
|
||
Interest expense
|
|
(259
|
)
|
|
(150
|
)
|
||
Earnings before income taxes
|
|
2,701
|
|
|
2,490
|
|
||
Provision for income taxes
|
|
(1,074
|
)
|
|
(1,077
|
)
|
||
Net earnings
|
|
1,627
|
|
|
1,413
|
|
||
Earnings attributable to noncontrolling interests
|
|
(16
|
)
|
|
—
|
|
||
Net earnings attributable to UnitedHealth Group common shareholders
|
|
$
|
1,611
|
|
|
$
|
1,413
|
|
Earnings per share attributable to UnitedHealth Group common shareholders:
|
|
|
|
|
||||
Basic
|
|
$
|
1.69
|
|
|
$
|
1.48
|
|
Diluted
|
|
$
|
1.67
|
|
|
$
|
1.46
|
|
Basic weighted-average number of common shares outstanding
|
|
953
|
|
|
954
|
|
||
Dilutive effect of common share equivalents
|
|
14
|
|
|
15
|
|
||
Diluted weighted-average number of common shares outstanding
|
|
967
|
|
|
969
|
|
||
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents
|
|
7
|
|
|
9
|
|
||
Cash dividends declared per common share
|
|
$
|
0.500
|
|
|
$
|
0.375
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
(in millions)
|
|
2016
|
|
2015
|
||||
Net earnings
|
|
$
|
1,627
|
|
|
$
|
1,413
|
|
Other comprehensive income (loss):
|
|
|
|
|
||||
Gross unrealized gains on investment securities during the period
|
|
260
|
|
|
105
|
|
||
Income tax effect
|
|
(96
|
)
|
|
(37
|
)
|
||
Total unrealized gains, net of tax
|
|
164
|
|
|
68
|
|
||
Gross reclassification adjustment for net realized gains included in net earnings
|
|
(35
|
)
|
|
(3
|
)
|
||
Income tax effect
|
|
13
|
|
|
1
|
|
||
Total reclassification adjustment, net of tax
|
|
(22
|
)
|
|
(2
|
)
|
||
Total foreign currency translation gains (losses)
|
|
388
|
|
|
(959
|
)
|
||
Other comprehensive income (loss)
|
|
530
|
|
|
(893
|
)
|
||
Comprehensive income
|
|
2,157
|
|
|
520
|
|
||
Comprehensive income attributable to noncontrolling interests
|
|
(16
|
)
|
|
—
|
|
||
Comprehensive income attributable to UnitedHealth Group common shareholders
|
|
$
|
2,141
|
|
|
$
|
520
|
|
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Nonredeemable Noncontrolling Interest
|
|
Total
Equity
|
|||||||||||||||||||
(in millions)
|
|
Shares
|
|
Amount
|
|
|
|
Net Unrealized Gains on Investments
|
|
Foreign Currency Translation (Losses) Gains
|
|
|
|||||||||||||||||||
Balance at January 1, 2016
|
|
953
|
|
|
$
|
10
|
|
|
$
|
29
|
|
|
$
|
37,125
|
|
|
$
|
56
|
|
|
$
|
(3,390
|
)
|
|
$
|
(105
|
)
|
|
$
|
33,725
|
|
Adjustment to adopt
ASU 2016-09 |
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
28
|
|
|||||||||||||
Net earnings
|
|
|
|
|
|
|
|
1,611
|
|
|
|
|
|
|
11
|
|
|
1,622
|
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
142
|
|
|
388
|
|
|
|
|
530
|
|
||||||||||||
Issuances of common stock, and related tax effects
|
|
5
|
|
|
—
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|||||||||||
Share-based compensation
|
|
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
150
|
|
|||||||||||||
Common share repurchases
|
|
(4
|
)
|
|
—
|
|
|
(176
|
)
|
|
(324
|
)
|
|
|
|
|
|
|
|
(500
|
)
|
||||||||||
Cash dividends paid on common shares
|
|
|
|
|
|
|
|
(477
|
)
|
|
|
|
|
|
|
|
(477
|
)
|
|||||||||||||
Redeemable noncontrolling interests fair value and other adjustments
|
|
|
|
|
|
(59
|
)
|
|
|
|
|
|
|
|
|
|
(59
|
)
|
|||||||||||||
Distribution to nonredeemable noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8
|
)
|
|
(8
|
)
|
|||||||||||||
Balance at March 31, 2016
|
|
954
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
37,963
|
|
|
$
|
198
|
|
|
$
|
(3,002
|
)
|
|
$
|
(102
|
)
|
|
$
|
35,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2015
|
|
954
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
33,836
|
|
|
$
|
223
|
|
|
$
|
(1,615
|
)
|
|
$
|
—
|
|
|
$
|
32,454
|
|
Net earnings
|
|
|
|
|
|
|
|
1,413
|
|
|
|
|
|
|
|
|
1,413
|
|
|||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
66
|
|
|
(959
|
)
|
|
|
|
(893
|
)
|
||||||||||||
Issuances of common stock, and related tax effects
|
|
6
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Share-based compensation, and related tax benefits
|
|
|
|
|
|
206
|
|
|
|
|
|
|
|
|
|
|
206
|
|
|||||||||||||
Common share repurchases
|
|
(8
|
)
|
|
—
|
|
|
(157
|
)
|
|
(739
|
)
|
|
|
|
|
|
|
|
(896
|
)
|
||||||||||
Cash dividends paid on common shares
|
|
|
|
|
|
|
|
(357
|
)
|
|
|
|
|
|
|
|
(357
|
)
|
|||||||||||||
Redeemable noncontrolling interests fair value and other adjustments
|
|
|
|
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
(49
|
)
|
|||||||||||||
Balance at March 31, 2015
|
|
952
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
34,153
|
|
|
$
|
289
|
|
|
$
|
(2,574
|
)
|
|
$
|
—
|
|
|
$
|
31,878
|
|
|
|
Three Months Ended March 31,
|
||||||
(in millions)
|
|
2016
|
|
2015
|
||||
Operating activities
|
|
|
|
|
||||
Net earnings
|
|
$
|
1,627
|
|
|
$
|
1,413
|
|
Noncash items:
|
|
|
|
|
||||
Depreciation and amortization
|
|
502
|
|
|
378
|
|
||
Deferred income taxes
|
|
145
|
|
|
122
|
|
||
Share-based compensation
|
|
157
|
|
|
125
|
|
||
Other, net
|
|
6
|
|
|
(44
|
)
|
||
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:
|
|
|
|
|
||||
Accounts receivable
|
|
(1,110
|
)
|
|
(758
|
)
|
||
Other assets
|
|
(2,162
|
)
|
|
(2,162
|
)
|
||
Medical costs payable
|
|
1,368
|
|
|
1,610
|
|
||
Accounts payable and other liabilities
|
|
1,770
|
|
|
1,648
|
|
||
Other policy liabilities
|
|
266
|
|
|
154
|
|
||
Unearned revenues
|
|
(251
|
)
|
|
(217
|
)
|
||
Cash flows from operating activities
|
|
2,318
|
|
|
2,269
|
|
||
Investing activities
|
|
|
|
|
||||
Purchases of investments
|
|
(5,173
|
)
|
|
(1,891
|
)
|
||
Sales of investments
|
|
2,122
|
|
|
503
|
|
||
Maturities of investments
|
|
978
|
|
|
843
|
|
||
Cash paid for acquisitions, net of cash assumed
|
|
(1,697
|
)
|
|
(575
|
)
|
||
Purchases of property, equipment and capitalized software
|
|
(425
|
)
|
|
(373
|
)
|
||
Other, net
|
|
14
|
|
|
(32
|
)
|
||
Cash flows used for investing activities
|
|
(4,181
|
)
|
|
(1,525
|
)
|
||
Financing activities
|
|
|
|
|
||||
Common share repurchases
|
|
(500
|
)
|
|
(896
|
)
|
||
Cash dividends paid
|
|
(477
|
)
|
|
(357
|
)
|
||
Proceeds from common stock issuances
|
|
198
|
|
|
192
|
|
||
Proceeds from issuance of long-term debt
|
|
2,485
|
|
|
—
|
|
||
Repayments of long-term debt
|
|
(601
|
)
|
|
(416
|
)
|
||
(Repayments of) proceeds from commercial paper, net
|
|
(285
|
)
|
|
1,194
|
|
||
Customer funds administered
|
|
1,067
|
|
|
1,049
|
|
||
Other, net
|
|
(385
|
)
|
|
(270
|
)
|
||
Cash flows from financing activities
|
|
1,502
|
|
|
496
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
34
|
|
|
(85
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
|
(327
|
)
|
|
1,155
|
|
||
Cash and cash equivalents, beginning of period
|
|
10,923
|
|
|
7,495
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
10,596
|
|
|
$
|
8,650
|
|
(in millions)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
$
|
2,318
|
|
|
$
|
13
|
|
|
$
|
(1
|
)
|
|
$
|
2,330
|
|
State and municipal obligations
|
|
6,233
|
|
|
180
|
|
|
(2
|
)
|
|
6,411
|
|
||||
Corporate obligations
|
|
8,751
|
|
|
110
|
|
|
(30
|
)
|
|
8,831
|
|
||||
U.S. agency mortgage-backed securities
|
|
2,488
|
|
|
28
|
|
|
(3
|
)
|
|
2,513
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
958
|
|
|
17
|
|
|
(4
|
)
|
|
971
|
|
||||
Total debt securities - available-for-sale
|
|
20,748
|
|
|
348
|
|
|
(40
|
)
|
|
21,056
|
|
||||
Equity securities - available-for-sale
|
|
1,739
|
|
|
63
|
|
|
(53
|
)
|
|
1,749
|
|
||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
175
|
|
|
3
|
|
|
—
|
|
|
178
|
|
||||
State and municipal obligations
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Corporate obligations
|
|
326
|
|
|
—
|
|
|
—
|
|
|
326
|
|
||||
Total debt securities - held-to-maturity
|
|
508
|
|
|
3
|
|
|
—
|
|
|
511
|
|
||||
Total investments
|
|
$
|
22,995
|
|
|
$
|
414
|
|
|
$
|
(93
|
)
|
|
$
|
23,316
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
$
|
1,982
|
|
|
$
|
1
|
|
|
$
|
(6
|
)
|
|
$
|
1,977
|
|
State and municipal obligations
|
|
6,022
|
|
|
149
|
|
|
(3
|
)
|
|
6,168
|
|
||||
Corporate obligations
|
|
7,446
|
|
|
41
|
|
|
(81
|
)
|
|
7,406
|
|
||||
U.S. agency mortgage-backed securities
|
|
2,127
|
|
|
13
|
|
|
(16
|
)
|
|
2,124
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
962
|
|
|
5
|
|
|
(11
|
)
|
|
956
|
|
||||
Total debt securities - available-for-sale
|
|
18,539
|
|
|
209
|
|
|
(117
|
)
|
|
18,631
|
|
||||
Equity securities - available-for-sale
|
|
1,638
|
|
|
58
|
|
|
(57
|
)
|
|
1,639
|
|
||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
163
|
|
|
1
|
|
|
—
|
|
|
164
|
|
||||
State and municipal obligations
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Corporate obligations
|
|
339
|
|
|
—
|
|
|
—
|
|
|
339
|
|
||||
Total debt securities - held-to-maturity
|
|
510
|
|
|
1
|
|
|
—
|
|
|
511
|
|
||||
Total investments
|
|
$
|
20,687
|
|
|
$
|
268
|
|
|
$
|
(174
|
)
|
|
$
|
20,781
|
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
(in millions)
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost |
|
Fair
Value |
||||||||
Due in one year or less
|
|
$
|
2,534
|
|
|
$
|
2,539
|
|
|
$
|
128
|
|
|
$
|
128
|
|
Due after one year through five years
|
|
7,944
|
|
|
8,019
|
|
|
184
|
|
|
186
|
|
||||
Due after five years through ten years
|
|
4,841
|
|
|
4,968
|
|
|
114
|
|
|
114
|
|
||||
Due after ten years
|
|
1,983
|
|
|
2,046
|
|
|
82
|
|
|
83
|
|
||||
U.S. agency mortgage-backed securities
|
|
2,488
|
|
|
2,513
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
958
|
|
|
971
|
|
|
—
|
|
|
—
|
|
||||
Total debt securities
|
|
$
|
20,748
|
|
|
$
|
21,056
|
|
|
$
|
508
|
|
|
$
|
511
|
|
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
(in millions)
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized Losses |
|
Fair
Value
|
|
Gross
Unrealized Losses |
||||||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency obligations
|
|
$
|
507
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
507
|
|
|
$
|
(1
|
)
|
State and municipal obligations
|
|
488
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
488
|
|
|
(2
|
)
|
||||||
Corporate obligations
|
|
2,107
|
|
|
(22
|
)
|
|
337
|
|
|
(8
|
)
|
|
2,444
|
|
|
(30
|
)
|
||||||
U.S. agency mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
214
|
|
|
(3
|
)
|
|
214
|
|
|
(3
|
)
|
||||||
Non-U.S. agency mortgage-backed securities
|
|
203
|
|
|
(1
|
)
|
|
145
|
|
|
(3
|
)
|
|
348
|
|
|
(4
|
)
|
||||||
Total debt securities - available-for-sale
|
|
$
|
3,305
|
|
|
$
|
(26
|
)
|
|
$
|
696
|
|
|
$
|
(14
|
)
|
|
$
|
4,001
|
|
|
$
|
(40
|
)
|
Equity securities - available-for-sale
|
|
$
|
98
|
|
|
$
|
(8
|
)
|
|
$
|
94
|
|
|
$
|
(45
|
)
|
|
$
|
192
|
|
|
$
|
(53
|
)
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency obligations
|
|
$
|
1,473
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,473
|
|
|
$
|
(6
|
)
|
State and municipal obligations
|
|
650
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
650
|
|
|
(3
|
)
|
||||||
Corporate obligations
|
|
4,629
|
|
|
(63
|
)
|
|
339
|
|
|
(18
|
)
|
|
4,968
|
|
|
(81
|
)
|
||||||
U.S. agency mortgage-backed securities
|
|
1,304
|
|
|
(12
|
)
|
|
116
|
|
|
(4
|
)
|
|
1,420
|
|
|
(16
|
)
|
||||||
Non-U.S. agency mortgage-backed securities
|
|
593
|
|
|
(7
|
)
|
|
127
|
|
|
(4
|
)
|
|
720
|
|
|
(11
|
)
|
||||||
Total debt securities - available-for-sale
|
|
$
|
8,649
|
|
|
$
|
(91
|
)
|
|
$
|
582
|
|
|
$
|
(26
|
)
|
|
$
|
9,231
|
|
|
$
|
(117
|
)
|
Equity securities - available-for-sale
|
|
$
|
112
|
|
|
$
|
(11
|
)
|
|
$
|
89
|
|
|
$
|
(46
|
)
|
|
$
|
201
|
|
|
$
|
(57
|
)
|
|
|
Three Months Ended March 31,
|
||||||
(in millions)
|
|
2016
|
|
2015
|
||||
Total other than temporary impairments recognized in earnings
|
|
$
|
(21
|
)
|
|
$
|
(1
|
)
|
Gross realized losses from sales
|
|
(31
|
)
|
|
(6
|
)
|
||
Gross realized gains from sales
|
|
87
|
|
|
10
|
|
||
Net realized gains (included in investment and other income on the Condensed Consolidated Statements of Operations)
|
|
35
|
|
|
3
|
|
||
Income tax effect (included in provision for income taxes on the Condensed Consolidated Statements of Operations)
|
|
(13
|
)
|
|
(1
|
)
|
||
Realized gains, net of taxes
|
|
$
|
22
|
|
|
$
|
2
|
|
(in millions)
|
|
Quoted Prices
in Active
Markets
(Level 1)
|
|
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
Fair and Carrying
Value
|
||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
10,590
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
10,596
|
|
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
2,159
|
|
|
171
|
|
|
—
|
|
|
2,330
|
|
||||
State and municipal obligations
|
|
—
|
|
|
6,411
|
|
|
—
|
|
|
6,411
|
|
||||
Corporate obligations
|
|
8
|
|
|
8,725
|
|
|
98
|
|
|
8,831
|
|
||||
U.S. agency mortgage-backed securities
|
|
—
|
|
|
2,513
|
|
|
—
|
|
|
2,513
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
—
|
|
|
971
|
|
|
—
|
|
|
971
|
|
||||
Total debt securities - available-for-sale
|
|
2,167
|
|
|
18,791
|
|
|
98
|
|
|
21,056
|
|
||||
Equity securities - available-for-sale
|
|
1,344
|
|
|
15
|
|
|
390
|
|
|
1,749
|
|
||||
Interest rate swap assets
|
|
—
|
|
|
245
|
|
|
—
|
|
|
245
|
|
||||
Total assets at fair value
|
|
$
|
14,101
|
|
|
$
|
19,057
|
|
|
$
|
488
|
|
|
$
|
33,646
|
|
Percentage of total assets at fair value
|
|
42
|
%
|
|
57
|
%
|
|
1
|
%
|
|
100
|
%
|
||||
December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
10,906
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
10,923
|
|
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
1,779
|
|
|
198
|
|
|
—
|
|
|
1,977
|
|
||||
State and municipal obligations
|
|
—
|
|
|
6,168
|
|
|
—
|
|
|
6,168
|
|
||||
Corporate obligations
|
|
5
|
|
|
7,308
|
|
|
93
|
|
|
7,406
|
|
||||
U.S. agency mortgage-backed securities
|
|
—
|
|
|
2,124
|
|
|
—
|
|
|
2,124
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
—
|
|
|
951
|
|
|
5
|
|
|
956
|
|
||||
Total debt securities - available-for-sale
|
|
1,784
|
|
|
16,749
|
|
|
98
|
|
|
18,631
|
|
||||
Equity securities - available-for-sale
|
|
1,223
|
|
|
14
|
|
|
402
|
|
|
1,639
|
|
||||
Interest rate swap assets
|
|
—
|
|
|
93
|
|
|
—
|
|
|
93
|
|
||||
Total assets at fair value
|
|
$
|
13,913
|
|
|
$
|
16,873
|
|
|
$
|
500
|
|
|
$
|
31,286
|
|
Percentage of total assets at fair value
|
|
44
|
%
|
|
54
|
%
|
|
2
|
%
|
|
100
|
%
|
||||
Interest rate swap liabilities
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
11
|
|
(in millions)
|
|
Quoted Prices
in Active
Markets
(Level 1)
|
|
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
Fair
Value
|
|
Total Carrying Value
|
||||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency obligations
|
|
$
|
178
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
175
|
|
State and municipal obligations
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|||||
Corporate obligations
|
|
87
|
|
|
11
|
|
|
228
|
|
|
326
|
|
|
326
|
|
|||||
Total debt securities - held-to-maturity
|
|
$
|
265
|
|
|
$
|
11
|
|
|
$
|
235
|
|
|
$
|
511
|
|
|
$
|
508
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
478
|
|
Long-term debt and other financing obligations
|
|
$
|
—
|
|
|
$
|
32,605
|
|
|
$
|
—
|
|
|
$
|
32,605
|
|
|
$
|
30,020
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency obligations
|
|
$
|
164
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
163
|
|
State and municipal obligations
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|||||
Corporate obligations
|
|
91
|
|
|
10
|
|
|
238
|
|
|
339
|
|
|
339
|
|
|||||
Total debt securities - held-to-maturity
|
|
$
|
255
|
|
|
$
|
10
|
|
|
$
|
246
|
|
|
$
|
511
|
|
|
$
|
510
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
493
|
|
|
$
|
—
|
|
|
$
|
493
|
|
|
$
|
500
|
|
Long-term debt and other financing obligations
|
|
$
|
—
|
|
|
$
|
29,455
|
|
|
$
|
—
|
|
|
$
|
29,455
|
|
|
$
|
27,978
|
|
|
|
March 31, 2016
|
|
March 31, 2015
|
||||||||||||||||||||
(in millions)
|
|
Debt
Securities
|
|
Equity
Securities
|
|
Total
|
|
Debt
Securities
|
|
Equity
Securities
|
|
Total
|
||||||||||||
Balance at beginning of period
|
|
$
|
98
|
|
|
$
|
402
|
|
|
$
|
500
|
|
|
$
|
74
|
|
|
$
|
310
|
|
|
$
|
384
|
|
Purchases
|
|
4
|
|
|
12
|
|
|
16
|
|
|
4
|
|
|
4
|
|
|
8
|
|
||||||
Sales
|
|
(7
|
)
|
|
(2
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Net unrealized gains (losses) in accumulated other comprehensive income
|
|
3
|
|
|
(6
|
)
|
|
(3
|
)
|
|
1
|
|
|
(5
|
)
|
|
(4
|
)
|
||||||
Net realized (losses) gains in investment and other income
|
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Balance at end of period
|
|
$
|
98
|
|
|
$
|
390
|
|
|
$
|
488
|
|
|
$
|
79
|
|
|
$
|
309
|
|
|
$
|
388
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(in millions)
|
|
Subsidies
|
|
Drug Discount
|
|
Risk-Share
|
|
Subsidies
|
|
Drug Discount
|
|
Risk-Share
|
||||||||||||
Other current receivables
|
|
$
|
1,356
|
|
|
$
|
242
|
|
|
$
|
—
|
|
|
$
|
1,703
|
|
|
$
|
423
|
|
|
$
|
—
|
|
Other policy liabilities
|
|
—
|
|
|
34
|
|
|
527
|
|
|
—
|
|
|
58
|
|
|
496
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(in millions, except percentages)
|
|
Par
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Par
Value
|
|
Carrying
Value (a) |
|
Fair
Value
|
||||||||||||
Commercial paper
|
|
$
|
3,702
|
|
|
$
|
3,702
|
|
|
$
|
3,702
|
|
|
$
|
3,987
|
|
|
$
|
3,987
|
|
|
$
|
3,987
|
|
Floating rate term loan due July 2016
|
|
1,500
|
|
|
1,500
|
|
|
1,500
|
|
|
1,500
|
|
|
1,500
|
|
|
1,500
|
|
||||||
5.375% notes due March 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601
|
|
|
605
|
|
|
606
|
|
||||||
1.875% notes due November 2016
|
|
400
|
|
|
400
|
|
|
403
|
|
|
400
|
|
|
400
|
|
|
403
|
|
||||||
5.360% notes due November 2016
|
|
95
|
|
|
95
|
|
|
97
|
|
|
95
|
|
|
95
|
|
|
98
|
|
||||||
Floating rate notes due January 2017
|
|
750
|
|
|
749
|
|
|
751
|
|
|
750
|
|
|
749
|
|
|
751
|
|
||||||
6.000% notes due June 2017
|
|
441
|
|
|
455
|
|
|
467
|
|
|
441
|
|
|
458
|
|
|
469
|
|
||||||
1.450% notes due July 2017
|
|
750
|
|
|
749
|
|
|
754
|
|
|
750
|
|
|
749
|
|
|
750
|
|
||||||
1.400% notes due October 2017
|
|
625
|
|
|
624
|
|
|
627
|
|
|
625
|
|
|
624
|
|
|
624
|
|
||||||
6.000% notes due November 2017
|
|
156
|
|
|
162
|
|
|
168
|
|
|
156
|
|
|
162
|
|
|
168
|
|
||||||
1.400% notes due December 2017
|
|
750
|
|
|
751
|
|
|
753
|
|
|
750
|
|
|
751
|
|
|
748
|
|
||||||
6.000% notes due February 2018
|
|
1,100
|
|
|
1,112
|
|
|
1,194
|
|
|
1,100
|
|
|
1,114
|
|
|
1,196
|
|
||||||
1.900% notes due July 2018
|
|
1,500
|
|
|
1,495
|
|
|
1,523
|
|
|
1,500
|
|
|
1,494
|
|
|
1,505
|
|
||||||
1.700% notes due February 2019
|
|
750
|
|
|
747
|
|
|
756
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1.625% notes due March 2019
|
|
500
|
|
|
502
|
|
|
504
|
|
|
500
|
|
|
502
|
|
|
494
|
|
||||||
2.300% notes due December 2019
|
|
500
|
|
|
509
|
|
|
508
|
|
|
500
|
|
|
499
|
|
|
502
|
|
||||||
2.700% notes due July 2020
|
|
1,500
|
|
|
1,494
|
|
|
1,558
|
|
|
1,500
|
|
|
1,493
|
|
|
1,516
|
|
||||||
3.875% notes due October 2020
|
|
450
|
|
|
464
|
|
|
487
|
|
|
450
|
|
|
452
|
|
|
476
|
|
||||||
4.700% notes due February 2021
|
|
400
|
|
|
424
|
|
|
452
|
|
|
400
|
|
|
413
|
|
|
438
|
|
||||||
2.125% notes due March 2021
|
|
750
|
|
|
744
|
|
|
757
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
3.375% notes due November 2021
|
|
500
|
|
|
516
|
|
|
534
|
|
|
500
|
|
|
500
|
|
|
517
|
|
||||||
2.875% notes due December 2021
|
|
750
|
|
|
778
|
|
|
779
|
|
|
750
|
|
|
753
|
|
|
760
|
|
||||||
2.875% notes due March 2022
|
|
1,100
|
|
|
1,097
|
|
|
1,140
|
|
|
1,100
|
|
|
1,059
|
|
|
1,099
|
|
||||||
3.350% notes due July 2022
|
|
1,000
|
|
|
994
|
|
|
1,064
|
|
|
1,000
|
|
|
994
|
|
|
1,023
|
|
||||||
0.000% notes due November 2022
|
|
15
|
|
|
11
|
|
|
12
|
|
|
15
|
|
|
10
|
|
|
11
|
|
||||||
2.750% notes due February 2023
|
|
625
|
|
|
635
|
|
|
636
|
|
|
625
|
|
|
611
|
|
|
613
|
|
||||||
2.875% notes due March 2023
|
|
750
|
|
|
810
|
|
|
770
|
|
|
750
|
|
|
781
|
|
|
742
|
|
||||||
3.750% notes due July 2025
|
|
2,000
|
|
|
1,985
|
|
|
2,155
|
|
|
2,000
|
|
|
1,985
|
|
|
2,062
|
|
||||||
3.100% notes due March 2026
|
|
1,000
|
|
|
994
|
|
|
1,023
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
4.625% notes due July 2035
|
|
1,000
|
|
|
991
|
|
|
1,116
|
|
|
1,000
|
|
|
991
|
|
|
1,038
|
|
||||||
5.800% notes due March 2036
|
|
850
|
|
|
837
|
|
|
1,081
|
|
|
850
|
|
|
838
|
|
|
1,003
|
|
||||||
6.500% notes due June 2037
|
|
500
|
|
|
491
|
|
|
674
|
|
|
500
|
|
|
492
|
|
|
628
|
|
||||||
6.625% notes due November 2037
|
|
650
|
|
|
640
|
|
|
896
|
|
|
650
|
|
|
641
|
|
|
829
|
|
||||||
6.875% notes due February 2038
|
|
1,100
|
|
|
1,074
|
|
|
1,544
|
|
|
1,100
|
|
|
1,076
|
|
|
1,439
|
|
||||||
5.700% notes due October 2040
|
|
300
|
|
|
295
|
|
|
377
|
|
|
300
|
|
|
296
|
|
|
348
|
|
||||||
5.950% notes due February 2041
|
|
350
|
|
|
345
|
|
|
454
|
|
|
350
|
|
|
345
|
|
|
416
|
|
||||||
4.625% notes due November 2041
|
|
600
|
|
|
588
|
|
|
669
|
|
|
600
|
|
|
588
|
|
|
609
|
|
||||||
4.375% notes due March 2042
|
|
502
|
|
|
483
|
|
|
540
|
|
|
502
|
|
|
483
|
|
|
493
|
|
||||||
3.950% notes due October 2042
|
|
625
|
|
|
606
|
|
|
629
|
|
|
625
|
|
|
606
|
|
|
582
|
|
||||||
4.250% notes due March 2043
|
|
750
|
|
|
733
|
|
|
790
|
|
|
750
|
|
|
734
|
|
|
728
|
|
||||||
4.750% notes due July 2045
|
|
2,000
|
|
|
1,971
|
|
|
2,293
|
|
|
2,000
|
|
|
1,971
|
|
|
2,107
|
|
||||||
Total commercial paper, term loan and long-term debt
|
|
$
|
33,586
|
|
|
$
|
33,552
|
|
|
$
|
36,137
|
|
|
$
|
31,972
|
|
|
$
|
31,801
|
|
|
$
|
33,278
|
|
(a)
|
In the first quarter of 2016, the Company adopted ASU 2015-03, retrospectively as required. See Note 1 of Notes to the Condensed Consolidated Financial Statements for more information on the adoption of ASU 2015-03.
|
|
|
|
|
Optum
|
|
|
|
|
||||||||||||||||||||||||
(in millions)
|
|
UnitedHealthcare
|
|
OptumHealth
|
|
OptumInsight
|
|
OptumRx
|
|
Optum Eliminations
|
|
Optum
|
|
Corporate and
Eliminations
|
|
Consolidated
|
||||||||||||||||
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - external customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
33,963
|
|
|
$
|
848
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
848
|
|
|
$
|
—
|
|
|
$
|
34,811
|
|
Products
|
|
—
|
|
|
13
|
|
|
20
|
|
|
6,360
|
|
|
—
|
|
|
6,393
|
|
|
—
|
|
|
6,393
|
|
||||||||
Services
|
|
1,796
|
|
|
612
|
|
|
606
|
|
|
126
|
|
|
—
|
|
|
1,344
|
|
|
—
|
|
|
3,140
|
|
||||||||
Total revenues - external customers
|
|
35,759
|
|
|
1,473
|
|
|
626
|
|
|
6,486
|
|
|
—
|
|
|
8,585
|
|
|
—
|
|
|
44,344
|
|
||||||||
Total revenues - intersegment
|
|
—
|
|
|
2,485
|
|
|
1,041
|
|
|
7,785
|
|
|
(254
|
)
|
|
11,057
|
|
|
(11,057
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
141
|
|
|
40
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
183
|
|
||||||||
Total revenues
|
|
$
|
35,900
|
|
|
$
|
3,998
|
|
|
$
|
1,667
|
|
|
$
|
14,273
|
|
|
$
|
(254
|
)
|
|
$
|
19,684
|
|
|
$
|
(11,057
|
)
|
|
$
|
44,527
|
|
Earnings from operations
|
|
$
|
1,854
|
|
|
$
|
300
|
|
|
$
|
246
|
|
|
$
|
560
|
|
|
$
|
—
|
|
|
$
|
1,106
|
|
|
$
|
—
|
|
|
$
|
2,960
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(259
|
)
|
|
(259
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
1,854
|
|
|
$
|
300
|
|
|
$
|
246
|
|
|
$
|
560
|
|
|
$
|
—
|
|
|
$
|
1,106
|
|
|
$
|
(259
|
)
|
|
$
|
2,701
|
|
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - external customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
30,905
|
|
|
$
|
769
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
769
|
|
|
$
|
—
|
|
|
$
|
31,674
|
|
Products
|
|
—
|
|
|
5
|
|
|
20
|
|
|
1,205
|
|
|
—
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
||||||||
Services
|
|
1,603
|
|
|
521
|
|
|
559
|
|
|
23
|
|
|
—
|
|
|
1,103
|
|
|
—
|
|
|
2,706
|
|
||||||||
Total revenues - external customers
|
|
32,508
|
|
|
1,295
|
|
|
579
|
|
|
1,228
|
|
|
—
|
|
|
3,102
|
|
|
—
|
|
|
35,610
|
|
||||||||
Total revenues - intersegment
|
|
—
|
|
|
1,963
|
|
|
811
|
|
|
7,067
|
|
|
(159
|
)
|
|
9,682
|
|
|
(9,682
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
115
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
146
|
|
||||||||
Total revenues
|
|
$
|
32,623
|
|
|
$
|
3,289
|
|
|
$
|
1,390
|
|
|
$
|
8,295
|
|
|
$
|
(159
|
)
|
|
$
|
12,815
|
|
|
$
|
(9,682
|
)
|
|
$
|
35,756
|
|
Earnings from operations
|
|
$
|
1,898
|
|
|
$
|
234
|
|
|
$
|
222
|
|
|
$
|
286
|
|
|
$
|
—
|
|
|
$
|
742
|
|
|
$
|
—
|
|
|
$
|
2,640
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(150
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
1,898
|
|
|
$
|
234
|
|
|
$
|
222
|
|
|
$
|
286
|
|
|
$
|
—
|
|
|
$
|
742
|
|
|
$
|
(150
|
)
|
|
$
|
2,490
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
(in millions, except percentages and per share data)
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
|||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Premiums
|
|
$
|
34,811
|
|
|
$
|
31,674
|
|
|
$
|
3,137
|
|
|
10
|
%
|
Products
|
|
6,393
|
|
|
1,230
|
|
|
5,163
|
|
|
420
|
|
|||
Services
|
|
3,140
|
|
|
2,706
|
|
|
434
|
|
|
16
|
|
|||
Investment and other income
|
|
183
|
|
|
146
|
|
|
37
|
|
|
25
|
|
|||
Total revenues
|
|
44,527
|
|
|
35,756
|
|
|
8,771
|
|
|
25
|
|
|||
Operating costs (a):
|
|
|
|
|
|
|
|
|
|||||||
Medical costs
|
|
28,430
|
|
|
25,790
|
|
|
2,640
|
|
|
10
|
|
|||
Operating costs
|
|
6,758
|
|
|
5,834
|
|
|
924
|
|
|
16
|
|
|||
Cost of products sold
|
|
5,877
|
|
|
1,114
|
|
|
4,763
|
|
|
428
|
|
|||
Depreciation and amortization
|
|
502
|
|
|
378
|
|
|
124
|
|
|
33
|
|
|||
Total operating costs
|
|
41,567
|
|
|
33,116
|
|
|
8,451
|
|
|
26
|
|
|||
Earnings from operations
|
|
2,960
|
|
|
2,640
|
|
|
320
|
|
|
12
|
|
|||
Interest expense
|
|
(259
|
)
|
|
(150
|
)
|
|
109
|
|
|
73
|
|
|||
Earnings before income taxes
|
|
2,701
|
|
|
2,490
|
|
|
211
|
|
|
8
|
|
|||
Provision for income taxes
|
|
(1,074
|
)
|
|
(1,077
|
)
|
|
(3
|
)
|
|
—
|
|
|||
Net earnings
|
|
1,627
|
|
|
1,413
|
|
|
214
|
|
|
15
|
|
|||
Earnings attributable to noncontrolling interests
|
|
(16
|
)
|
|
—
|
|
|
16
|
|
|
nm
|
|
|||
Net earnings attributable to UnitedHealth Group common shareholders
|
|
$
|
1,611
|
|
|
$
|
1,413
|
|
|
$
|
198
|
|
|
14
|
%
|
Diluted earnings per share attributable to UnitedHealth Group common shareholders
|
|
$
|
1.67
|
|
|
$
|
1.46
|
|
|
$
|
0.21
|
|
|
14
|
%
|
Medical care ratio (b)
|
|
81.7
|
%
|
|
81.4
|
%
|
|
0.3
|
%
|
|
|
||||
Operating cost ratio
|
|
15.2
|
|
|
16.3
|
|
|
(1.1
|
)
|
|
|
||||
Operating margin
|
|
6.6
|
|
|
7.4
|
|
|
(0.8
|
)
|
|
|
||||
Tax rate
|
|
39.8
|
|
|
43.3
|
|
|
(3.5
|
)
|
|
|
||||
Net earnings margin (c)
|
|
3.6
|
|
|
4.0
|
|
|
(0.4
|
)
|
|
|
||||
Return on equity (d)
|
|
18.7
|
%
|
|
17.6
|
%
|
|
1.1
|
%
|
|
|
(a)
|
During the fourth quarter of 2015, the Company changed its presentation of certain pharmacy fulfillment costs related to its OptumRx business. See Note 1 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report for more information on this reclassification.
|
(b)
|
Medical care ratio is calculated as medical costs divided by premium revenue.
|
(c)
|
Net earnings margin attributable to UnitedHealth Group shareholders.
|
(d)
|
Return on equity is calculated as annualized net earnings divided by average equity. Average equity is calculated using the equity balance at the end of the preceding year and the equity balances at the end of each of the quarters in the period presented.
|
•
|
Consolidated revenues grew
25%
, UnitedHealthcare revenues grew
10%
and Optum revenues grew
54%
.
|
•
|
UnitedHealthcare grew to serve an additional
2.0 million
people domestically.
|
•
|
Earnings from operations increased
12%
, including an increase of
49%
at Optum, partially offset by a slight decrease at UnitedHealthcare.
|
•
|
Diluted earnings per common share increased
14%
to
$1.67
.
|
•
|
Cash flows from operations were
$2.3 billion
.
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
|||||||||||
(in millions, except percentages)
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||||||
Revenues
|
|
|
|
|
|
|
|
|
|||||||
UnitedHealthcare
|
|
$
|
35,900
|
|
|
$
|
32,623
|
|
|
$
|
3,277
|
|
|
10
|
%
|
OptumHealth
|
|
3,998
|
|
|
3,289
|
|
|
709
|
|
|
22
|
|
|||
OptumInsight
|
|
1,667
|
|
|
1,390
|
|
|
277
|
|
|
20
|
|
|||
OptumRx
|
|
14,273
|
|
|
8,295
|
|
|
5,978
|
|
|
72
|
|
|||
Optum eliminations
|
|
(254
|
)
|
|
(159
|
)
|
|
95
|
|
|
60
|
|
|||
Optum
|
|
19,684
|
|
|
12,815
|
|
|
6,869
|
|
|
54
|
|
|||
Eliminations
|
|
(11,057
|
)
|
|
(9,682
|
)
|
|
1,375
|
|
|
14
|
|
|||
Consolidated revenues
|
|
$
|
44,527
|
|
|
$
|
35,756
|
|
|
$
|
8,771
|
|
|
25
|
%
|
Earnings from operations
|
|
|
|
|
|
|
|
|
|||||||
UnitedHealthcare
|
|
$
|
1,854
|
|
|
$
|
1,898
|
|
|
$
|
(44
|
)
|
|
(2
|
)%
|
OptumHealth
|
|
300
|
|
|
234
|
|
|
66
|
|
|
28
|
|
|||
OptumInsight
|
|
246
|
|
|
222
|
|
|
24
|
|
|
11
|
|
|||
OptumRx
|
|
560
|
|
|
286
|
|
|
274
|
|
|
96
|
|
|||
Optum
|
|
1,106
|
|
|
742
|
|
|
364
|
|
|
49
|
|
|||
Consolidated earnings from operations
|
|
$
|
2,960
|
|
|
$
|
2,640
|
|
|
$
|
320
|
|
|
12
|
%
|
Operating margin
|
|
|
|
|
|
|
|
|
|||||||
UnitedHealthcare
|
|
5.2
|
%
|
|
5.8
|
%
|
|
(0.6
|
)%
|
|
|
||||
OptumHealth
|
|
7.5
|
|
|
7.1
|
|
|
0.4
|
|
|
|
||||
OptumInsight
|
|
14.8
|
|
|
16.0
|
|
|
(1.2
|
)
|
|
|
||||
OptumRx
|
|
3.9
|
|
|
3.4
|
|
|
0.5
|
|
|
|
||||
Optum
|
|
5.6
|
|
|
5.8
|
|
|
(0.2
|
)
|
|
|
||||
Consolidated operating margin
|
|
6.6
|
%
|
|
7.4
|
%
|
|
(0.8
|
)%
|
|
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
|||||||||||
(in millions, except percentages)
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|||||||||
UnitedHealthcare Employer & Individual
|
|
$
|
12,820
|
|
|
$
|
11,423
|
|
|
$
|
1,397
|
|
|
12
|
%
|
UnitedHealthcare Medicare & Retirement
|
|
14,065
|
|
|
12,781
|
|
|
1,284
|
|
|
10
|
|
|||
UnitedHealthcare Community & State
|
|
7,728
|
|
|
6,905
|
|
|
823
|
|
|
12
|
|
|||
UnitedHealthcare Global
|
|
1,287
|
|
|
1,514
|
|
|
(227
|
)
|
|
(15
|
)
|
|||
Total UnitedHealthcare revenues
|
|
$
|
35,900
|
|
|
$
|
32,623
|
|
|
$
|
3,277
|
|
|
10
|
%
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||
Sources of cash:
|
|
|
|
|
|
|
||||||
Cash provided by operating activities
|
|
$
|
2,318
|
|
|
$
|
2,269
|
|
|
$
|
49
|
|
Issuances of commercial paper and long-term debt, net of repayments
|
|
1,599
|
|
|
778
|
|
|
821
|
|
|||
Proceeds from common stock issuances
|
|
198
|
|
|
192
|
|
|
6
|
|
|||
Customer funds administered
|
|
1,067
|
|
|
1,049
|
|
|
18
|
|
|||
Other
|
|
14
|
|
|
—
|
|
|
14
|
|
|||
Total sources of cash
|
|
5,196
|
|
|
4,288
|
|
|
|
||||
Uses of cash:
|
|
|
|
|
|
|
||||||
Common stock repurchases
|
|
(500
|
)
|
|
(896
|
)
|
|
396
|
|
|||
Cash paid for acquisitions, net of cash assumed
|
|
(1,697
|
)
|
|
(575
|
)
|
|
(1,122
|
)
|
|||
Purchases of investments, net of sales and maturities
|
|
(2,073
|
)
|
|
(545
|
)
|
|
(1,528
|
)
|
|||
Purchases of property, equipment and capitalized software, net
|
|
(425
|
)
|
|
(373
|
)
|
|
(52
|
)
|
|||
Cash dividends paid
|
|
(477
|
)
|
|
(357
|
)
|
|
(120
|
)
|
|||
Other
|
|
(385
|
)
|
|
(302
|
)
|
|
(83
|
)
|
|||
Total uses of cash
|
|
(5,557
|
)
|
|
(3,048
|
)
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
34
|
|
|
(85
|
)
|
|
119
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(327
|
)
|
|
$
|
1,155
|
|
|
$
|
(1,482
|
)
|
|
Moody’s
|
|
Standard & Poor’s
|
|
Fitch
|
|
A.M. Best
|
||||||||
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
Senior unsecured debt
|
A3
|
|
Negative
|
|
A+
|
|
Negative
|
|
A-
|
|
Negative
|
|
bbb+
|
|
Stable
|
Commercial paper
|
P-2
|
|
n/a
|
|
A-1
|
|
n/a
|
|
F1
|
|
n/a
|
|
AMB-2
|
|
n/a
|
|
|
March 31, 2016
|
||||||||||||||
Increase (Decrease) in Market Interest Rate
|
|
Investment
Income Per
Annum (a)
|
|
Interest
Expense Per
Annum (a)
|
|
Fair Value of
Financial Assets (b)
|
|
Fair Value of
Financial Liabilities
|
||||||||
2 %
|
|
$
|
258
|
|
|
$
|
265
|
|
|
$
|
(1,526
|
)
|
|
$
|
(3,754
|
)
|
1
|
|
129
|
|
|
132
|
|
|
(772
|
)
|
|
(2,025
|
)
|
||||
(1)
|
|
(89
|
)
|
|
(58
|
)
|
|
706
|
|
|
2,386
|
|
||||
(2)
|
|
nm
|
|
|
nm
|
|
|
1,002
|
|
|
4,935
|
|
(a)
|
Given the low absolute level of short-term market rates on our floating-rate assets and liabilities as of
March 31, 2016
, the assumed hypothetical change in interest rates does not reflect the full 100 basis point reduction in interest income or interest expense as the rate cannot fall below zero and thus the 200 basis point reduction is not meaningful.
|
(b)
|
As of
March 31, 2016
, some of our investments had interest rates below 2% so the assumed hypothetical change in the fair value of investments does not reflect the full 200 basis point reduction.
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
For the Month Ended
|
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares That May
Yet Be Purchased
Under The Plans or
Programs
|
|||||
|
|
(in millions)
|
|
|
|
(in millions)
|
|
(in millions)
|
|||||
January 31, 2016
|
|
4
|
|
|
$
|
119
|
|
|
4
|
|
|
57
|
|
February 29, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
March 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
Total
|
|
4
|
|
|
$
|
119
|
|
|
4
|
|
|
|
(a)
|
In November 1997, our Board of Directors adopted a share repurchase program, which the Board evaluates periodically. In June 2014, the Board renewed our share repurchase program with an authorization to repurchase up to 100 million shares of our common stock in open market purchases or other types of transactions (including prepaid or structured repurchase programs). There is no established expiration date for the program.
|
ITEM 6.
|
EXHIBITS*
|
3.1
|
|
|
Certificate of Incorporation of UnitedHealth Group Incorporated (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 8-A/A filed on July 1, 2015)
|
3.2
|
|
|
Bylaws of UnitedHealth Group Incorporated, effective February 9, 2016 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on February 9, 2016)
|
4.1
|
|
|
Senior Indenture, dated as of November 15, 1998, between United HealthCare Corporation and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3/A, SEC File Number 333-66013, filed on January 11, 1999)
|
4.2
|
|
|
Amendment, dated as of November 6, 2000, to Senior Indenture, dated as of November 15, 1998, between UnitedHealth Group Incorporated and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2001)
|
4.3
|
|
|
Instrument of Resignation, Appointment and Acceptance of Trustee, dated January 8, 2007, pursuant to the Senior Indenture, dated as of November 15, 1998, amended November 6, 2000, among UnitedHealth Group Incorporated, The Bank of New York and Wilmington Trust Company (incorporated by reference to Exhibit 4.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
|
4.4
|
|
|
Indenture, dated as of February 4, 2008, between UnitedHealth Group Incorporated and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3, SEC File Number 333-149031, filed on February 4, 2008)
|
12.1
|
|
|
Computation of Ratio of Earnings to Fixed Charges
|
31.1
|
|
|
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
|
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
|
|
The following materials from UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 filed on May 4, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Changes in Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
|
*
|
|
Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of certain holders of long-term debt are not filed. The Company will furnish copies thereof to the SEC upon request.
|
/s/ S
TEPHEN
J. H
EMSLEY
|
|
Chief Executive Officer
(principal executive officer) |
Dated:
|
May 4, 2016
|
Stephen J. Hemsley
|
|
|
|
|
|
|
|
||
/s/ D
AVID
S. W
ICHMANN
|
|
President and Chief Financial Officer
(principal financial officer) |
Dated:
|
May 4, 2016
|
David S. Wichmann
|
|
|
|
|
|
|
|
||
/
S
/ T
HOMAS
E. R
OOS
|
|
Senior Vice President and
Chief Accounting Officer
(principal accounting officer) |
Dated:
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May 4, 2016
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Thomas E. Roos
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3.1
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Certificate of Incorporation of UnitedHealth Group Incorporated (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 8-A/A filed on July 1, 2015)
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3.2
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Bylaws of UnitedHealth Group Incorporated, effective February 9, 2016 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on February 9, 2016)
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4.1
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Senior Indenture, dated as of November 15, 1998, between United HealthCare Corporation and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3/A, SEC File Number 333-66013, filed on January 11, 1999)
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4.2
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Amendment, dated as of November 6, 2000, to Senior Indenture, dated as of November 15, 1998, between UnitedHealth Group Incorporated and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2001)
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4.3
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Instrument of Resignation, Appointment and Acceptance of Trustee, dated January 8, 2007, pursuant to the Senior Indenture, dated as of November 15, 1998, amended November 6, 2000, among UnitedHealth Group Incorporated, The Bank of New York and Wilmington Trust Company (incorporated by reference to Exhibit 4.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
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4.4
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Indenture, dated as of February 4, 2008, between UnitedHealth Group Incorporated and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3, SEC File Number 333-149031, filed on February 4, 2008)
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12.1
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Computation of Ratio of Earnings to Fixed Charges
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31.1
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Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32.1
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Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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101
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The following materials from UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 filed on May 4, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Changes in Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
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*
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Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of certain holders of long-term debt are not filed. The Company will furnish copies thereof to the SEC upon request.
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