What changed in this filing

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Item 1. Financial Statements

2022-10-19 compared with 2022-07-20 · 256 added, 251 removed, 1019 unchanged (33% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

September 30,

2022 December 31,

53 unchanged sentences

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

(In millions, except per share data) 2022 2021 2022 2021

27 unchanged sentences

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

(In millions) 2022 2021 2022 2021

7 unchanged sentences

Foreign currency translation adjustments ( 7 ) ( 1 ) ( 15 ) ( 7 )

Other comprehensive (loss) income ( 916 ) 180 ( 1,979 ) ( 167 )

Other comprehensive loss ( 638 ) ( 87 ) ( 2,617 ) ( 254 )

Net loss (income) attributable to noncontrolling interests 5 7 18 ( 3 )

Other comprehensive loss (income) attributable to noncontrolling interests 3 ( 2 ) 8 —

Other comprehensive loss attributable to noncontrolling interests 3 1 11 1

Total shareholders’ comprehensive income $ 983 $ 1,423 $ 2,470 $ 4,714

2 unchanged sentences

Consolidated Statements of Cash Flows

Six Months Ended

Nine Months Ended

(In millions) 2022 2021

27 unchanged sentences

Financing activities

Net proceeds from commercial paper borrowings 250 300

Net proceeds from (repayments of) commercial paper borrowings 375 ( 150 )

Proceeds from long-term borrowings 1,286 3,462

9 unchanged sentences

Other, net 16 8

Net cash provided by financing activities 195 2,568

Net cash (used in) provided by financing activities ( 1,060 ) 1,738

Effect of foreign exchange rates on cash and cash equivalents ( 16 ) ( 9 )

16 unchanged sentences

January 1, 2022 241.8 2 9,148 27,065 ( 178 ) 68 36,105

Net income — — — 1,805 — ( 10 ) 1,795

Net income (loss) — — — 1,805 — ( 10 ) 1,795

Other comprehensive loss — — — — ( 1,058 ) ( 5 ) ( 1,063 )

5 unchanged sentences

March 31, 2022 241.1 2 9,151 28,058 ( 1,236 ) 56 36,031

Net income — — — 1,653 — ( 3 ) 1,650

Net income (loss) — — — 1,653 — ( 3 ) 1,650

Other comprehensive loss — — — — ( 913 ) ( 3 ) ( 916 )

5 unchanged sentences

June 30, 2022 240.0 2 9,134 28,825 ( 2,149 ) 55 35,867

Net income (loss) — — — 1,618 — ( 5 ) 1,613

Other comprehensive loss — — — — ( 635 ) ( 3 ) ( 638 )

Noncontrolling interest adjustment — — — — — 5 5

Repurchase and retirement of common stock ( 1.2 ) — ( 47 ) ( 532 ) — — ( 579 )

Dividends and dividend equivalents — — — ( 307 ) — — ( 307 )

Issuance of common stock under employee stock plans, net of related tax benefits 0.2 — 103 — — — 103

Convertible debenture repurchases and conversions — — ( 21 ) — — — ( 21 )

September 30, 2022 239.0 $ 2 $ 9,169 $ 29,604 $ ( 2,784 ) $ 52 $ 36,043

See accompanying notes.

29 unchanged sentences

June 30, 2021 243.9 2 9,109 25,874 ( 17 ) 78 35,046

Net income (loss) — — — 1,509 — ( 7 ) 1,502

Other comprehensive loss — — — — ( 86 ) ( 1 ) ( 87 )

Noncontrolling interests adjustment — — — — — 1 1

Repurchase and retirement of common stock

( 1.2 ) — ( 44 ) ( 407 ) — — ( 451 )

Dividends and dividend equivalents

— — — ( 276 ) — — ( 276 )

Issuance of common stock under employee stock plans, net of related tax benefits

0.1 — 75 — — — 75

Convertible debenture repurchases and conversions

— — ( 2 ) — — — ( 2 )

September 30, 2021 242.8 $ 2 $ 9,138 $ 26,700 $ ( 103 ) $ 71 $ 35,808

See accompanying notes.

1 unchanged sentence

Notes to Consolidated Financial Statements

June 30, 2022

September 30, 2022

(In Millions, Except Per Share Data or As Otherwise Stated Herein)

On May 18, 2022, our shareholders approved a proposal to amend our amended and restated articles of incorporation to change our name from Anthem, Inc.

to Elevance Health, Inc., which amendment and name change went into effect on June 27, 2022.

to Elevance Health, Inc.

This amendment and name change went into effect on June 27, 2022.

We began operating as Elevance Health, Inc.

3 unchanged sentences

Elevance Health is a health company with the purpose of improving the health of humanity.

We are the largest health insurer in the United States in terms of medical membership, serving over 47 million medical members through our affiliated health plans as of June 30, 2022.

We are the largest health insurer in the United States in terms of medical membership, serving over 47 million medical members through our affiliated health plans as of September 30, 2022.

We offer a broad spectrum of network-based managed care risk-based plans to Individual, Group, Medicaid and Medicare markets.

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There are currently no segment changes associated with this branding strategy.

Our branding strategy reflects the evolution of our business from a traditional health insurance company to a lifetime, trusted health partner, and given this evolution we are in the process of reviewing and modifying how we will manage our businesses in the future.

Basis of Presentation and Significant Accounting Policies

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We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2021 Annual Report on Form 10-K, unless the information contained in those disclosures materially changed or is required by GAAP.

In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three and six months ended June 30, 2022 and 2021 have been recorded.

The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022, or any other period.

In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three and nine months ended September 30, 2022 and 2021 have been recorded.

The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022, or any other period.

The seasonal nature of portions of our health care and related benefits business, competitive and other market conditions, as well as COVID-19 related impacts, may cause full-year results to differ from estimates based upon our interim results of operations.

These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K.

6 unchanged sentences

We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits and we have cash and cash equivalents on deposit to meet certain regulatory requirements.

These amounts totaled $ 306 and $ 173 at June 30, 2022 and December 31, 2021, respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets.

These amounts totaled $ 291 and $ 173 at September 30, 2022 and December 31, 2021, respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets.

We classify fixed maturity securities in our investment portfolio as “available-for-sale” and report those securities at fair value.

11 unchanged sentences

When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments.

The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.

The net investment in the

securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities.

Such adjustments are reported within net investment income.

21 unchanged sentences

Premium receivables include the uncollected amounts from risk-based groups, individuals and government programs for insurance services.

Premium receivables are reported net of an allowance for doubtful accounts of $ 137 and $ 142 at June 30, 2022 and December 31, 2021, respectively.

Premium receivables are reported net of an allowance for doubtful accounts of $ 140 and $ 142 at September 30, 2022 and December 31, 2021, respectively.

Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers for administrative services.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 86 and $ 50 at June 30, 2022 and December 31, 2021, respectively.

Self-funded receivables are reported net of an allowance for doubtful accounts of $ 82 and $ 50 at September 30, 2022 and December 31, 2021, respectively.

Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, accrued investment income, and other miscellaneous amounts due to us.

These receivables are reported net of an allowance for doubtful accounts of $ 699 and $ 648 at June 30, 2022 and December 31, 2021, respectively.

These receivables are reported net of an allowance for doubtful accounts of $ 709 and $ 648 at September 30, 2022 and December 31, 2021, respectively.

Revenue Recognition:

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at June 30, 2022.

For the three and six months ended June 30, 2022 and 2021, revenue recognized from performance obligations related to prior periods, such as due to changes in transaction price, was not material.

For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at September 30, 2022.

For the three and nine months ended September 30, 2022 and 2021, revenue recognized from performance obligations related to prior periods, such as due to changes in transaction price, was not material.

For contracts that have an original expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material.

2 unchanged sentences

2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”).

The amendments in ASU

2021-01 provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of the reference rate reform.

The amendments in ASU 2021-01 provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of the reference rate reform.

The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level.

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The amendments related to the liability for future policy benefits for traditional and limited-payment contracts and deferred acquisition costs are to be applied to contracts in force as of the beginning of the earliest period presented, with an option to apply such amendments retrospectively with a cumulative-effect adjustment to the opening balance of retained earnings as of the earliest period presented.

The amendments for market risk benefits are to be applied retrospectively.

We are currently evaluating the effects the adoption of ASU 2020-11 and ASU 2018-12 will have on our consolidated financial position, results of operations, cash flows, and related disclosures.

The amendments

for market risk benefits are to be applied retrospectively.

We do not believe the adoption of ASU 2020-11 and ASU 2018-12 will have a material impact on our consolidated financial position, results of operations, cash flows, and related disclosures.

There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2021 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations or cash flows.

3 unchanged sentences

Integra is a managed long-term care plan that serves New York state Medicaid members, enabling adults with long-term care needs and disabilities to live safely and independently in their own homes.

The purchase price was allocated to the tangible and intangible net assets acquired based on management’s initial estimates of their fair values, of which $ 89 has been allocated to finite-lived intangible assets, $ 250 to indefinite-lived intangible assets, and $ 110 to goodwill.

The majority of goodwill is deductible for income tax purposes.

Acquisitions completed during the year ended December 31, 2021, for which the initial accounting was finalized as of June 30, 2022, included myNEXUS, Inc.

As of September 30, 2022, the initial accounting for the acquisition had not been finalized.

Any subsequent adjustments made to the assets acquired or liabilities assumed during the measurement period will be recorded as an adjustment to goodwill.

The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations.

Acquisitions completed during the year ended December 31, 2021, for which the initial accounting was finalized during the three months ended June 30, 2022 included myNEXUS, Inc.

(“myNEXUS”), a comprehensive home-based nursing management company for payors, and MMM Holdings, LLC (“MMM”), including its Medicare Advantage plan, Medicaid plan and other affiliated companies.

As of June 30, 2022, the purchase price of each transaction was allocated to the tangible and intangible net assets acquired based on management’s final estimates of their fair values, of which $ 1,577 has been allocated to finite-lived intangible assets, $ 20 to indefinite-lived intangible assets, and $ 2,531 to goodwill.

As of September 30, 2022, the purchase price of each transaction was allocated to the tangible and intangible net assets acquired based on management’s final estimates of their fair values, of which $ 1,577 has been allocated to finite-lived intangible assets, $ 20 to indefinite-lived intangible assets, and $ 2,531 to goodwill.

The majority of goodwill is not deductible for income tax purposes.

Adjustments to goodwill arising from contractual purchase price adjustments and subsequent adjustments made to the assets acquired or liabilities assumed during the quarter ended June 30, 2022 were $ 6 .

Business Optimization Initiatives

5 unchanged sentences

Payments ( 16 ) ( 14 ) — — ( 30 )

Liability for employee termination costs at June 30, 2022

Liability for employee termination costs at September 30, 2022

$ 45 $ 43 $ 1 $ 3 $ 92

3 unchanged sentences

We continue to review our investment portfolios under our impairment review policy.

Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and additional material impairment losses on investments may be recorded in future periods.

Although not material to our consolidated results of operations, during the six months ended June 30, 2022, we recorded a combination of credit losses, losses on sale of fixed maturity securities and impairments related to our exposure resulting from investments in Russia and Ukraine.

These items are reflected in the tables presented below.

At June 30, 2022, our remaining holdings of Russia and Ukraine fixed maturity securities were not material.

A summary of current and long-term fixed maturity securities, available-for-sale, at June 30, 2022 and December 31, 2021 is as follows:

A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2022 and December 31, 2021 is as follows:

Cost or Amortized Cost Gross

1 unchanged sentence

Losses Estimated

June 30, 2022

September 30, 2022

Fixed maturity securities:

19 unchanged sentences

Total fixed maturity securities $ 26,257 $ 830 $ ( 182 ) $ ( 6 ) $ 26,899

For fixed maturity securities in an unrealized loss position at June 30, 2022 and December 31, 2021, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position:

For fixed maturity securities in an unrealized loss position at September 30, 2022 and December 31, 2021, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position:

Less than 12 Months 12 Months or Greater

5 unchanged sentences

Fair Value Gross

June 30, 2022

September 30, 2022

Fixed maturity securities:

29 unchanged sentences

Total fixed maturity securities 3,571 $ 8,755 $ ( 131 ) 686 $ 985 $ ( 51 )

Below are discussions by security type for unrealized losses and credit losses as of June 30, 2022:

Foreign government securities:

An allowance for credit loss was established on certain foreign government securities related to Russia and the Ukraine.

The ongoing Russian/Ukrainian conflict and the uncertainties around future ability to collect payment, as well as a significant decline in fair value, were factors indicating a credit loss.

No other foreign government securities had material unrealized losses or qualitative factors to indicate a credit loss.

Corporate securities:

An allowance for credit losses on consumer-driven and financial sector fixed maturity corporate securities has been determined based on qualitative and quantitative factors including credit rating, decline in fair value and industry condition along with other available market data.

With multiple risk factors present, these securities were reviewed for expected future cash flow to determine the portion of unrealized losses that were credit related and to record an allowance for credit losses.

Unrealized losses on our other corporate securities were largely due to market conditions relating to increasing interest rates and the COVID-19 pandemic;

however, qualitative factors did not indicate a credit loss as of June 30, 2022.

We do not intend to sell these investments and it is likely we will not have to sell these investments prior to maturity or recovery of amortized cost.

Residential mortgage-backed securities:

An allowance for credit loss was established on certain residential mortgage-backed securities.

Notification of maturity and coupon default, as well as a significant and sustained decline in fair value, were factors to indicate a credit loss.

Unrealized losses on our other residential mortgage-backed securities were largely due to market conditions and rising interest rates;

however, qualitative factors did not indicate a credit loss.

We do not intend to sell these investments and it is likely we will not be required to sell these investments prior to maturity or recovery of amortized cost.

As for the remaining securities shown in the table above, unrealized losses on these securities have not been recognized into income because we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their anticipated recovery.

The decline in fair value is largely due to changes in interest rates and other market conditions.

We have evaluated these securities for any change in credit rating and have determined that no allowance is necessary.

The fair value is expected to recover as the securities approach maturity.

The table below presents a roll-forward by major security type of the allowance for credit losses on fixed maturity securities available-for-sale held at period end for the three and six months ended months June 30, 2022 and 2021:

Three Months Ended June 30, 2022 Six Months Ended June 30, 2022

Foreign government securities Corporate securities Residential mortgage-backed securities Total Foreign government securities Corporate Securities Residential mortgage-backed securities Total

Allowance for credit losses:

Beginning balance $ 3 $ 8 $ 2 $ 13 $ — $ 4 $ 2 $ 6

Additions for securities for which no previous expected credit losses were recognized — — — — 3 4 — 7

Securities sold during the period ( 2 ) ( 2 ) — ( 4 ) ( 2 ) ( 2 ) — ( 4 )

Decreases to the allowance for credit losses on securities — ( 1 ) — ( 1 ) — ( 1 ) — ( 1 )

Total allowance for credit losses, ending balance $ 1 $ 5 $ 2 $ 8 $ 1 $ 5 $ 2 $ 8

Three Months Ended June 30, 2021 Six Months Ended June 30, 2021

Corporate securities Residential mortgage-backed securities Total Corporate Securities Residential mortgage-backed securities Total

Allowance for credit losses:

Beginning balance $ 6 $ 2 $ 8 $ 7 $ — $ 7

Additions for securities for which no previous expected credit losses were recognized — — — 1 — 1

Securities sold during the period ( 2 ) — ( 2 ) ( 2 ) — ( 2 )

(Decreases) increases to the allowance for credit losses on securities — — — ( 2 ) 2 —

Total allowance for credit losses, ending balance $ 4 $ 2 $ 6 $ 4 $ 2 $ 6

The amortized cost and fair value of fixed maturity securities at June 30, 2022, by contractual maturity, are shown below.

Although not material to our consolidated results of operations, during the nine months ended September 30, 2022, we recorded a combination of credit losses, losses on sales of fixed maturity securities and impairments related to our exposure resulting from investments in Russia and Ukraine.

At September 30, 2022, our remaining holdings of Russia and Ukraine fixed maturity securities were not material.

Unrealized losses on our securities shown in the table above have not been recognized into income because, as of September 30, 2022, we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their maturity or anticipated recovery.

The declines in fair values are largely due to increasing interest rates driven by the high rate of inflation and other market conditions and not by unfavorable changes in the credit quality characteristics that impact our assessment on collectability of principal and interest.

We have evaluated qualitative and quantitative factors for indications of credit losses on our securities, including factors such as credit rating, foreign political conflicts, uncertainties around future ability to collect payment, significant declines in fair value and industry conditions, market data, and notifications of maturity and coupon default, and have recorded an allowance for credit losses in the amount of $ 10 and $ 6 at September 30, 2022 and December 31, 2021, respectively.

The amortized cost and fair value of fixed maturity securities at September 30, 2022, by contractual maturity, are shown below.

Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.

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Total fixed maturity securities $ 28,977 $ 26,148

During the three and six months ended June 30, 2022, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 7,026 and $ 10,672 , respectively.

During the three and six months ended June 30, 2021, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 627 and $ 5,950 , respectively.

During the three and nine months ended September 30, 2022, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 5,281 and $ 15,953 , respectively.

During the three and nine months ended September 30, 2021, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $ 2,620 and $ 8,570 , respectively.

In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to:

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Equity Securities

A summary of marketable equity securities at June 30, 2022 and December 31, 2021 is as follows:

June 30, 2022 December 31, 2021

A summary of marketable equity securities at September 30, 2022 and December 31, 2021 is as follows:

September 30, 2022 December 31, 2021

Equity securities:

8 unchanged sentences

Investment Gains and Losses

Net investment (losses) gains for the three and six months ended June 30, 2022 and 2021 are as follows:

Net investment (losses) gains for the three and nine months ended September 30, 2022 and 2021 are as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

7 unchanged sentences

Unrealized (losses) gains recognized on equity securities still held at the end of the period ( 43 ) ( 4 ) ( 192 ) 4

Net realized (losses) gains recognized on equity securities sold during the period ( 5 ) 1 ( 19 ) ( 56 )

Net (losses) gains on equity securities ( 88 ) 18 ( 173 ) ( 48 )

Net realized gains (losses) recognized on equity securities sold during the period 4 ( 1 ) ( 20 ) ( 57 )

Net losses on equity securities ( 39 ) ( 5 ) ( 212 ) ( 53 )

Other investments:

2 unchanged sentences

Impairment (losses) recoveries recognized in income ( 12 ) 1 ( 17 ) ( 5 )

Net losses on other investments ( 6 ) 92 ( 16 ) 89

Net losses (gains) on other investments 81 ( 90 ) 64 ( 1 )

Net (losses) gains on investments $ ( 54 ) $ ( 73 ) $ ( 482 ) $ 48

Accrued Investment Income

At June 30, 2022 and December 31, 2021, accrued investment income totaled $ 212 and $ 205 , respectively.

At September 30, 2022 and December 31, 2021, accrued investment income totaled $ 228 and $ 205 , respectively.

We recognize accrued investment income under the caption “Other receivables” on our consolidated balance sheets.

1 unchanged sentence

We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral.

The fair value of the collateral received at the time of the transactions amounted to $ 2,775 and $ 2,155 at June 30, 2022 and December 31, 2021, respectively.

The value of the collateral represented 102 % of the market value of the securities on loan at each of June 30, 2022 and December 31, 2021.

The fair value of the collateral received at the time of the transactions amounted to $ 2,841 and $ 2,155 at September 30, 2022 and December 31, 2021, respectively.

The value of the collateral represented 102 % of the market value of the securities on loan at each of September 30, 2022 and December 31, 2021.

We recognize the collateral as an asset under the caption “Other current assets” in our consolidated balance sheets, and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets.

At June 30, 2022 and December 31, 2021, the remaining contractual maturity of our securities lending agreements included overnight and continuous transactions of cash for $ 2,527 and $ 1,874 , respectively, of United States Government securities for $ 241 and $ 281 , respectively, and of Other securities for $ 7 and $ 0 , respectively.

At September 30, 2022 and December 31, 2021, the remaining contractual maturity of our securities lending agreements included overnight and continuous transactions of cash for $ 2,636 and $ 1,874 , respectively, of United States Government securities for $ 180 and $ 281 , respectively, and of Other securities for $ 25 and $ 0 , respectively.

Derivative Financial Instruments

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LIBOR or the Secured Overnight Financing Rate (“SOFR”).

Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current assets,” or “Other noncurrent assets,” or “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets.

The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss, net of tax, was $ 233 and $ 239 at June 30, 2022 and December 31, 2021, respectively.

During the three and six months ended June 30, 2022 , we recognized net gains on non-hedging derivatives of $ 24 and $ 46 , respectively.

During the three and six months ended June 30, 2021 , we recognized net gains on non-hedging derivatives of $ 25 and $ 47 , respectively.

Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current assets,” “Other noncurrent assets,” “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets.

The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss, net of tax, was $ 231 and $ 239 at September 30, 2022 and December 31, 2021, respectively.

During the three and nine months ended September 30, 2022 , we recognized net (losses) gains on non-hedging derivatives of $( 3 ) and $ 43 , respectively.

During the three and nine months ended September 30, 2021 , we recognized net gains on non-hedging derivatives of $ 12 and $ 59 , respectively.

For additional information relating to the fair value of our derivative assets and liabilities, see Note 7, “Fair Value,” of this Form 10-Q.

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Derivatives presented within the fair value hierarchy table below are presented on a gross basis and not on a master netting basis by counterparty.

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021 is as follows:

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021 is as follows:

Level I Level II Level III Total

June 30, 2022

September 30, 2022

Cash equivalents $ 5,794 $ — $ — $ 5,794

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Total liabilities $ — $ ( 1 ) $ — $ ( 1 )

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended June 30, 2022 and 2021 is as follows:

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended September 30, 2022 and 2021 is as follows:

Securities Residential

2 unchanged sentences

Securities Total

Three Months Ended June 30, 2022

Beginning balance at April 1, 2022 $ 341 $ 4 $ 37 $ 99 $ 481

Three Months Ended September 30, 2022

Beginning balance at July 1, 2022 $ 155 $ — $ 218 $ 94 $ 467

Total losses:

Recognized in net income — — — — —

Recognized in accumulated other comprehensive loss 1 — 17 — 18

Purchases 15 — 77 3 95

1 unchanged sentence

Settlements ( 10 ) — — — ( 10 )

Transfers into Level III 14 — — — 14

Transfers out of Level III ( 6 ) — — — ( 6 )

Ending balance at June 30, 2022 $ 155 $ — $ 218 $ 94 $ 467

Change in unrealized losses included in net income related to assets still held at June 30, 2022 $ — $ — $ — $ ( 3 ) $ ( 3 )

Three Months Ended June 30, 2021

Beginning balance at April 1, 2021 $ 324 $ 2 $ 5 $ 65 $ 396

Ending balance at September 30, 2022 $ 129 $ — $ 311 $ 95 $ 535

Change in unrealized losses included in net income related to assets still held at September 30, 2022 $ — $ — $ — $ — $ —

Three Months Ended September 30, 2021

Beginning balance at July 1, 2021 $ 351 $ 2 $ 7 $ 77 $ 437

Recognized in net income 1 — — 5 6

3 unchanged sentences

Settlements ( 47 ) — — — ( 47 )

Ending balance at June 30, 2021 $ 351 $ 2 $ 7 $ 77 $ 437

Change in unrealized gains included in net income related to assets still held at June 30, 2021 $ — $ — $ — $ 5 $ 5

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the six months ended June 30, 2022 and 2021 is as follows:

Transfers out of Level III ( 4 ) ( 1 ) ( 5 ) — ( 10 )

Ending balance at September 30, 2021 $ 334 $ 1 $ 2 $ 84 $ 421

Change in unrealized gains included in net income related to assets still held at September 30, 2021 $ — $ — $ — $ 5 $ 5

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the nine months ended September 30, 2022 and 2021 is as follows:

Securities Residential

2 unchanged sentences

Securities Total

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Beginning balance at January 1, 2022 $ 336 $ 5 $ 19 $ 89 $ 449

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Transfers out of Level III ( 12 ) ( 5 ) ( 5 ) — ( 22 )

Ending balance at June 30, 2022 $ 155 $ — $ 218 $ 94 $ 467

Change in unrealized gains included in net income related to assets still held at June 30, 2022 $ — $ — $ — $ 1 $ 1

Six Months Ended June 30, 2021

Ending balance at September 30, 2022 $ 129 $ — $ 311 $ 95 $ 535

Change in unrealized gains included in net income related to assets still held at September 30, 2022 $ — $ — $ — $ 1 $ 1

Nine Months Ended September 30, 2021

Beginning balance at January 1, 2021 $ 325 $ 2 $ 5 $ 60 $ 392

4 unchanged sentences

Settlements ( 118 ) — ( 1 ) — ( 119 )

Ending balance at June 30, 2021 $ 351 $ 2 $ 7 $ 77 $ 437

Change in unrealized gains included in net income related to assets still held at June 30, 2021 $ — $ — $ — $ 13 $ 13

There were no individually material transfers into or out of Level III during the three and six months ended June 30, 2022 or 2021.

Transfers out of Level III ( 2 ) ( 1 ) ( 2 ) — ( 5 )

Ending balance at September 30, 2021 $ 334 $ 1 $ 2 $ 84 $ 421

Change in unrealized gains included in net income related to assets still held at September 30, 2021 $ — $ — $ — $ 17 $ 17

There were no individually material transfers into or out of Level III during the three and nine months ended September 30, 2022 or 2021.

Certain assets and liabilities are measured at fair value on a nonrecurring basis;

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We developed internal estimates for the expected cash flows and discount rate in the present value calculation.

Other than the assets acquired and liabilities assumed in our acquisitions of Integra, myNEXUS and MMM described above, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three and six months ended June 30, 2022 or 2021.

Our valuation policy is determined by members of our treasury and accounting departments.

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Our analysis includes procedures such as a review of month-to-month price fluctuations and price comparisons to secondary pricing services.

There were no adjustments to quoted market prices obtained from the pricing services during the three and six months ended June 30, 2022 or 2021.

There were no adjustments to quoted market prices obtained from the pricing services during the three and nine months ended September 30, 2022 or 2021.

In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets.

17 unchanged sentences

The fair value of our convertible debentures is based on the quoted market price in the active private market in which the convertible debentures trade.

A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at June 30, 2022 and December 31, 2021 is as follows:

A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at September 30, 2022 and December 31, 2021 is as follows:

Value Estimated Fair Value

Level I Level II Level III Total

June 30, 2022

September 30, 2022

Other invested assets $ 5,367 $ — $ — $ 5,367 $ 5,367

9 unchanged sentences

Convertible debentures 72 — 687 — 687

During the three months ended June 30, 2022 and 2021, we recognized income tax expense of $ 493 and $ 552 , respectively, which represent effective income tax rates of 23.0 % and 23.5 %, respectively.

The decrease in our effective tax rate from the three months ended June 30, 2021 is primarily related to the tax impact of expected geographic changes in our mix of 2022 earnings.

During the six months ended June 30, 2022 and 2021, we recognized income tax expense of $ 1,024 and $ 1,061 , respectively, which represent effective income tax rates of 22.9 % and 23.4 %, respectively.

The decrease in our effective tax rate from the six months ended June 30, 2021 is primarily related to the tax impact of expected geographic changes in our mix of 2022 earnings.

Income taxes receivable totaled $ 332 and $ 173 at June 30, 2022 and December 31, 2021, respectively.

During the three months ended September 30, 2022 and 2021, we recognized income tax expense of $ 533 and $ 494 , respectively, which represent effective income tax rates of 24.8 % and 24.7 %, respectively.

During the nine months ended September 30, 2022 and 2021, we recognized income tax expense of $ 1,557 and $ 1,555 , respectively, which represent effective income tax rates of 23.5 % and 23.8 %, respectively.

The decrease in our effective tax rate from the nine months ended September 30, 2021 was primarily related to the tax impact of expected geographic changes in our mix of 2022 earnings.

Income taxes receivable totaled $ 214 and $ 173 at September 30, 2022 and December 31, 2021, respectively.

We recognized the income taxes receivable as an asset under the caption “Other current assets” in our consolidated balance sheets.

Medical Claims Payable

A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the six months ended June 30, 2022 is as follows:

A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the nine months ended September 30, 2022 is as follows:

Business Government

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Gross medical claims payable, end of period $ 3,921 $ 10,807 $ 273 $ 15,001

At June 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $ 101 , $ 673 and $ 3,294 for the claim years 2020 and prior, 2021 and 2022, respectively.

At June 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $ 223 , $ 869 and $ 9,474 for the claim years 2020 and prior, 2021 and 2022, respectively.

At June 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $ 1 , $ 21 and $ 220 for the claim years 2020 and prior, 2021 and 2022, respectively.

A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the six months ended June 30, 2021 is as follows:

At September 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $ 81 , $ 388 and $ 3,449 for the claim years 2020 and prior, 2021 and 2022, respectively.

At September 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $ 148 , $ 508 and $ 10,151 for the claim years 2020 and prior, 2021 and 2022, respectively.

At September 30, 2022, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $ 2 , $ 14 and $ 257 for the claim years 2020 and prior, 2021 and 2022, respectively.

A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the nine months ended September 30, 2021 is as follows:

Business Government

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Gross medical claims payable, end of period $ 3,864 $ 9,183 $ 252 $ 13,299

The favorable development recognized in the six months ended June 30, 2022 and 2021 resulted primarily from trend factors in late 2021 and late 2020, respectively, developing more favorably than originally expected.

Favorable development in the completion factors resulting from the latter parts of 2020 developing faster than expected also contributed to the favorable development in the six months ended June 30, 2021.

The impact from COVID-19 on healthcare utilization and medical claims submission patterns continues to provide increased estimation uncertainty on our incurred but not reported liability at June 30, 2022.

The favorable development recognized in the nine months ended September 30, 2022 and 2021 resulted primarily from trend factors in late 2021 and late 2020, respectively, developing more favorably than originally expected.

Favorable development in the completion factors resulting from the latter parts of 2020 developing faster than expected also contributed to the favorable development in the nine months ended September 30, 2021.

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2022 is as follows:

Three Months Ended Six Months Ended June 30, 2022

March 31, 2022 June 30, 2022

Three Months Ended Nine Months Ended September 30, 2022

March 31, 2022 June 30, 2022 September 30, 2022

Net incurred medical claims:

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Benefit expense $ 28,215 $ 28,777 $ 29,404 $ 86,396

During the three months ended September 30, 2022, based on recent regulatory clarification, we realigned certain quality improvement costs from benefit expense to administrative expense that were previously allocated to benefit expense during the three months ended March 31, 2022 and the three months ended June 30, 2022.

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2021 is as follows:

Three Months Ended Six Months Ended June 30, 2021

March 31, 2021 June 30, 2021

Three Months Ended Nine Months Ended September 30, 2021

March 31, 2021 June 30, 2021 September 30, 2021

Net incurred medical claims:

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Benefit expense $ 23,699 $ 24,763 $ 26,645 $ 75,107

The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of June 30, 2022, is as follows:

Business Government

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We generally issue senior unsecured notes for long-term borrowing purposes.

At June 30, 2022 and December 31, 2021, we had $ 22,749 and $ 22,359 , respectively, outstanding under these notes.

At September 30, 2022 and December 31, 2021, we had $ 22,722 and $ 22,359 , respectively, outstanding under these notes.

On May 16, 2022, we repaid, at maturity, the $ 850 outstanding balance of our 3.125 % senior unsecured notes.

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We used the net proceeds for working capital and general corporate purposes, such as the funding of acquisitions, repayment of short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program.

We have an unsecured surplus note with an outstanding principal balance of $ 25 at both June 30, 2022 and December 31, 2021.

We have an unsecured surplus note with an outstanding principal balance of $ 25 at both September 30, 2022 and December 31, 2021.

We have a senior revolving credit facility (the “5-Year Facility”) with a group of lenders for general corporate purposes.

On April 18, 2022, we amended and restated the credit agreement for the 5-Year Facility to, among other things, extend the maturity date of the 5-Year Facility from June 2024 to April 2027 and increase the amount of credit available under the 5-Year Facility from $ 2,500 to $ 4,000 .

Also on April 18, 2022, concurrently with the amendment and restatement of the 5-Year Facility, we terminated our 364-day senior revolving credit facility that provided for credit in the amount of $ 1,000 , which was scheduled to mature in June 2022 (the “2021 364-Day Facility” and together with the 5-Year Facility, the “Credit Facilities”).

In June 2021, we terminated our 364-day senior revolving credit facility (the “prior 364-Day Facility”), which was scheduled to mature in June 2021, and entered into the 2021 364-Day Facility with a group of lenders for general corporate purposes.

Our ability to borrow under the 5-Year Facility is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%, subject to increase in certain circumstances set forth in the credit agreement for the 5-Year Facility.

As of June 30, 2022, our debt-to-capital ratio, as defined and calculated under the 5-Year Facility, was 39.7%.

As of September 30, 2022, our debt-to-capital ratio, as defined and calculated under the 5-Year Facility, was 39.7%.

We do not believe the restrictions contained in our 5-Year Facility covenants materially affect our financial or operating flexibility.

As of June 30, 2022, we were in compliance with all

of our debt covenants under the 5-Year Facility.

There were no amounts outstanding under the 5-Year Facility, 2021 364-Day Facility or the prior 364-Day Facility at any time during the six months ended June 30, 2022 or the year ended December 31, 2021.

of September 30, 2022, we were in compliance with all of our debt covenants under the 5-Year Facility.

There were no amounts outstanding under the 5-Year Facility, the 2021 364-Day Facility or the prior 364-Day Facility at any time during the nine months ended September 30, 2022 or the year ended December 31, 2021.

Through certain subsidiaries, we have entered into multiple 364-day lines of credit (the “Subsidiary Credit Facilities”) with separate lenders for general corporate purposes.

The Subsidiary Credit Facilities provide combined credit of up to $ 200 .

At June 30, 2022 and December 31, 2021, there were no amounts outstanding under our Subsidiary Credit Facilities.

At September 30, 2022 and December 31, 2021, there were no amounts outstanding under our Subsidiary Credit Facilities.

We have an authorized commercial paper program of up to $ 4,000 , the proceeds of which may be used for general corporate purposes.

In July 2022, we increased the amount available under the commercial paper program from $ 3,500 to $4,000.

At June 30, 2022 and December 31, 2021, we had $ 550 and $ 300 , respectively, outstanding under this program.

At September 30, 2022 and December 31, 2021, we had $ 675 and $ 300 , respectively, outstanding under this program.

We have outstanding senior unsecured convertible debentures due 2042 (the “Debentures”), which are governed by an indenture (the “indenture”) between us and The Bank of New York Mellon Trust Company, N.A., as trustee.

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We adopted ASU 2020-06 on January 1, 2022 using the modified retrospective transition method, which resulted in an increase to our reported debt outstanding of $ 31 , a decrease of our deferred tax liabilities of $ 8 and a corresponding cumulative-effect reduction to our opening retained earnings of $ 23 , eliminating the bifurcation of the embedded conversion option.

During the three and six months ended June 30, 2022, $ 13 and $ 15 of aggregate principal amount of the Debentures was surrendered for conversion by certain holders in accordance with the terms and provisions of the indenture.

We elected to settle the excess of the principal amount of the conversions with cash for total payments during the three and six months ended June 30, 2022 of $ 93 and $ 107 , respectively.

The following table summarizes at June 30, 2022 the related balances, conversion rate and conversion price of the Debentures:

During the three and nine months ended September 30, 2022, $ 4 and $ 19 of aggregate principal amount of the Debentures was surrendered for conversion by certain holders in accordance with the terms and provisions of the indenture.

We elected to settle the excess of the principal amount of the conversions with cash for total payments during the three and nine months ended September 30, 2022 of $ 25 and $ 132 , respectively.

The following table summarizes at September 30, 2022 the related balances, conversion rate and conversion price of the Debentures:

Outstanding principal amount $ 86

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As a member, we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements.

We had $ 175 and $ 275 of outstanding short-term borrowings from the FHLBs at June 30, 2022 and December 31, 2021, respectively.

We had $ 265 and $ 275 of outstanding short-term borrowings from the FHLBs at September 30, 2022 and December 31, 2021, respectively.

All debt is a direct obligation of Elevance Health, Inc., except for the surplus note, the FHLB borrowings, and the Subsidiary Credit Facilities.

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With respect to the cases described below, we contest liability and/or the amount of damages in each matter and believe we have meritorious defenses.

Where available information indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income.

In many proceedings, however, it is difficult to determine whether any loss is probable or reasonably possible.

addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible loss or range of loss.

In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible loss or range of loss.

With respect to many of the proceedings to which we are a party, we cannot provide an estimate of the possible losses, or the range of possible losses in excess of the amount, if any, accrued, for various reasons, including but not limited to some or all of the following:

(i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings.

For those legal proceedings where a loss is probable, or reasonably possible, and for which it is possible to reasonably estimate the amount of the possible loss or range of losses, we currently believe that the range of possible losses, in excess of established reserves is, in the aggregate, from $ 0 to approximately $ 325 at June 30, 2022.

This estimated aggregate range of reasonably possible losses is based upon currently available information taking into account our best estimate of such losses for which such an estimate can be made.

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In April 2018, the Court issued an order on the parties’ cross motions for partial summary judgment, determining that the defendants’ aggregation of geographic market allocations and output restrictions are to be analyzed under a per se standard of review, and the BlueCard ® program and other alleged Section 1 Sherman Act violations are to be analyzed under the rule of reason standard of review.

The Court also found that there remain genuine issues of material fact as to whether the defendants operate as a single entity with regard to the enforcement of the Blue Cross Blue Shield trademarks.

With respect to whether the defendants operate as a single entity with regard to the enforcement of the Blue Cross Blue Shield trademarks, the Court found that summary judgment was not appropriate due to the existence of genuine issues of material fact.

In April 2019, the plaintiffs filed motions for class certification, which defendants opposed.

The BCBSA and Blue plans have approved a settlement agreement and release (the “Subscriber Settlement Agreement”) with the subscriber plaintiffs.

If approved by the Court, the Subscriber Settlement Agreement will require the defendants to make a monetary settlement payment, our portion of which is estimated to be $ 594 , and will contain certain terms imposing non-monetary obligations including (i) eliminating the “national best efforts” rule in the BCBSA license agreements (which rule limits the percentage of non-Blue revenue permitted for each Blue plan) and (ii) allowing for some large national employers with self-funded benefit plans to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan.

As of June 30, 2022, the liability balance accrued for our estimated payment obligation was $ 507 , net of payments made.

The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which agreement required the Court’s approval to become effective.

The Subscriber Settlement Agreement requires the defendants to make a monetary settlement payment and contains certain terms imposing non-monetary obligations including (i) eliminating the “national best efforts” rule in the BCBSA license agreements (which rule limits the percentage of non-Blue revenue permitted for each Blue plan) and (ii) allowing for some large national employers with self-funded benefit plans to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan.

In November 2020, the Court issued an order preliminarily approving the Subscriber Settlement Agreement, following which members of the subscriber class were provided notice of the Subscriber Settlement Agreement and an opportunity to opt out of the class.

All terms of the Subscriber Settlement Agreement are subject to final approval by the Court.

The deadline for objections to the settlement as well as the deadline for those who wished to opt-out from the settlement was in July 2021 and a small number of subscribers submitted valid opt-outs by the deadline.

The claims deadline was in November 2021 and in excess of eight thousand claims were submitted.

A final approval hearing was held in October 2021.

The Court took the request for approval under advisement and requested supplemental briefing that was submitted.

In February 2022, the Court ordered the issuance of a supplemental notice to self-funded account class members.

The notice process was completed in March 2022.

The deadline for objections to the supplemental notice along with opt-outs was in May 2022, and a motion certifying compliance with the supplemental notice was filed by class counsel in May 2022 .

If the Court grants approval of the Subscriber Settlement Agreement, and after all appellate rights have expired or have been exhausted in a

manner that affirms the Court’s final order and judgment, the defendants’ payment and non-monetary obligations under the Subscriber Settlement Agreement will become effective.

A small number of subscribers submitted valid opt-outs by the July 2021 opt-out deadline.

In excess of eight thousand claims were submitted by the November 2021 claims submission deadline.

A fairness hearing was held in October 2021 and the Court took the request for final approval under advisement and requested supplemental briefing that was submitted.

In February 2022, the Court ordered the issuance of a supplemental notice to self-funded account class members, which notice process was completed in March 2022.

The deadline for objections to the supplemental notice along with opt-outs was in May 2022 .

In August 2022, the Court issued a final approval order for the Subscriber Settlement Agreement.

The Court amended its final approval order in September 2022, further clarifying the injunctive relief that may be available to subscribers who submitted valid opt-outs.

In September 2022, an objector filed a motion to amend the final approval order, which the Court

In compliance with the Subscriber Settlement Agreement, the Company paid its remaining $ 506 portion of the settlement fund into an escrow account in September 2022, for an aggregate settlement payment by the Company of $ 596 .

Four notices of appeal of the final approval order were filed by the September 2022 deadline.

Those appeals will proceed in the United States Court of Appeals for the Eleventh Circuit.

In October 2022, the subscriber plaintiffs filed a motion to consolidate and expedite the four appeals.

After all appellate rights have been exhausted in a manner that affirms the Court’s final order and judgment, the defendants’ payment and non-monetary obligations under the Subscriber Settlement Agreement will become effective.

In October 2020, after the Court lifted the stay as to the provider litigation, provider plaintiffs filed a renewed motion for class certification, which defendants opposed.

2 unchanged sentences

In June 2021, the parties filed summary judgment motions not critically dependent on class certification.

In February 2022, the Court issued (1) an order granting certain defendants’ motion for partial summary judgment against provider plaintiffs who had previously released claims against such defendants, and (2) an order granting provider plaintiffs’ motion for partial summary judgment, holding that Ohio v.

In February 2022, the Court issued (i) an order granting certain defendants’ motion for partial summary judgment against provider plaintiffs who had previously released claims against such defendants, and (ii) an order granting provider plaintiffs’ motion for partial summary judgment, holding that Ohio v.

American Express Co .

does not affect the standard of review in this case.

We intend to continue to vigorously defend the provider suit, which we believe is without merit;

In August 2022, the Court issued (i) an order granting in part the defendants’ motion regarding the antitrust standard of review, holding that for the period of time after the elimination of the “national best efforts” rule, the rule of reason applies to the provider plaintiffs’ market allocation conspiracy claims, and (ii) an order denying the provider plaintiffs’ motion for partial summary judgment on the standard of review, reaffirming its prior holding that the providers’ group boycott claims are subject to the rule of reason.

We intend to continue to vigorously defend the provider litigation, which we believe is without merit;

however, its ultimate outcome cannot be presently determined.

A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed.

Those actions are:

Alaska Air Group, Inc., et al.

Anthem, Inc., et al., No.

2:21-cv-01209-AMM (N.D.

JetBlue Airways Corp., et al.

Anthem, Inc., et al.

2:22-cv-00558-GMB (N.D.

Metropolitan Transportation Authority v.

Blue Cross and Blue Shield of Alabama et al.

2:22-cv-00265-RDP (N.D.

Bed Bath & Beyond Inc.

2:22-cv-01256-SGC (N.D.

Hoover, et al.

Blue Cross Blue Shield Association, et al.

2:22-cv-00261-RDP (N.D.

and VHS Liquidating Trust v.

Blue Cross of California, et al.

RG21106600 (Cal.

We intend to continue to vigorously defend these follow-on cases, which we believe are without merit;

however, their ultimate outcome cannot be presently determined.

Blue Cross of California Taxation Litigation

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In December 2020, the Superior Court granted BCC’s motion for summary judgment, dismissing the plaintiff’s lawsuit.

In November 2021, the plaintiff appealed the order granting BCC's motion for summary judgment.

BCC's responding brief was filed in February 2022.

We estimate that the appeal will be heard in the fall of 2022.

November 2021, the plaintiff appealed the order granting BCC's motion for summary judgment.

BCC’s responding brief was filed in March 2022.

Plaintiff’s reply was filed in May 2022.

We estimate that the appeal will be heard in the winter of 2022.

We intend to vigorously defend the appeal of this lawsuit.

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In the alternative, Express Scripts claims that we have been unjustly enriched by its payment of $ 4,675 at the time we entered into the ESI PBM Agreement.

In March 2017, the

District Court granted our motion to dismiss Express Scripts’ counterclaims for (i) breach of the implied covenant of good faith and fair dealing, and (ii) unjust enrichment with prejudice.

In March 2017, the District Court granted our motion to dismiss Express Scripts’ counterclaims for (i) breach of the implied covenant of good faith and fair dealing, and (ii) unjust enrichment with prejudice.

After such action, the only remaining claims were for breach of contract and declaratory relief.

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As a result of the summary judgment decision, the only remaining claims as of the filing of this Quarterly Report on Form 10-Q are (i) our operational breach claim based on Express Scripts’ prior authorization processes and (ii) Express Scripts’ counterclaim for breach of the market check provision of the ESI PBM Agreement.

Express Scripts filed a second motion for summary judgment in June 2022, challenging our remaining operational breach claims, and we filed an opposition to Express Scripts’ motion in July 2022.

Express Scripts filed a second motion for summary judgment in June 2022, challenging our remaining operational breach claims, which we opposed in July 2022.

We intend to appeal the earlier summary judgment decision at the appropriate time, vigorously pursue our claims and defend against counterclaims, which we believe are without merit;

however, the ultimate outcome of this litigation cannot be presently determined.

In re Express Scripts/Elevance Health ERISA Litigation

We are a defendant in a class action lawsuit that was initially filed in June 2016 against Elevance Health (fka Anthem, Inc.) and Express Scripts, which has been consolidated into a single multi-district lawsuit captioned In Re Express Scripts/Anthem ERISA Litigation, in the U.S.

District Court for the Southern District of New York.

The consolidated complaint was filed by plaintiffs against Express Scripts and us on behalf of all persons who are participants in or beneficiaries of any ERISA or non-ERISA healthcare plan from December 1, 2009 to December 31, 2019 in which we provided prescription drug benefits through the ESI PBM Agreement and paid a percentage based co-insurance payment in the course of using that prescription drug benefit.

The plaintiffs allege that we breached our duties, either under ERISA or with respect to the implied covenant of good faith and fair dealing implied in the health plans, (i) by failing to adequately monitor Express Scripts’ pricing under the ESI PBM Agreement, (ii) by placing our own pecuniary interest above the best interests of our insureds by allegedly agreeing to higher pricing in the ESI PBM Agreement in exchange for the purchase price for our NextRx PBM business, and (iii) with respect to the non-ERISA members, by negotiating and entering into the ESI PBM Agreement that was allegedly detrimental to the interests of such non-ERISA members.

Plaintiffs seek to hold us and Express Scripts jointly and severally liable and to recover all losses suffered by the proposed class, equitable relief, disgorgement of alleged ill-gotten gains, injunctive relief, attorney’s fees and costs and interest.

In April 2017, we filed a motion to dismiss the claims brought against us, and it was granted, without prejudice, in January 2018.

Plaintiffs pursued an appeal with the United States Court of Appeals for the Second Circuit (the “Second Circuit”).

In December 2020, the Second Circuit affirmed the trial court’s order dismissing the ERISA complaint.

Plaintiffs filed a Petition for Rehearing and Rehearing En Banc, which was denied.

Plaintiffs filed a writ of certiorari with the United States Supreme Court, which we opposed.

In December 2021, the United States Supreme Court requested that the Solicitor General submit a brief “expressing the views of the United States” as to whether the court should grant plaintiffs’ writ.

In May 2022, the Solicitor General recommended that the United States Supreme Court deny plaintiffs’ writ.

In June 2022, the United States Supreme Court declined plaintiffs’ writ of certiorari.

Medicare Risk Adjustment Litigation

In March 2020, the U.S.

Department of Justice (“DOJ”) filed a civil lawsuit against Elevance Health (fka Anthem, Inc.) in the U.S.

District Court for the Southern District of New York in a case captioned United States v.

Department of Justice (“DOJ”) filed a civil lawsuit against Elevance Health, Inc.

(f/k/a Anthem, Inc.) in the U.S.

District Court for the Southern District of New York (the “New York District Court”) in a case captioned United States v.

Anthem, Inc .

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In September 2020, we filed a motion to transfer the lawsuit to the Southern District of Ohio, a motion to dismiss part of the lawsuit, and a motion to strike certain allegations in the amended complaint.

The motions are fully briefed and no decision has been rendered.

In an opinion and order issued October 3, 2022, the New York District Court denied our motions, and the case will now proceed in such court.

We intend to continue to vigorously defend this suit, which we believe is without merit;

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Our CareMore investigation has resulted in the termination of CareMore’s relationship with one contracted provider in California.

Our HealthSun investigation has focused on risk adjustment practices initiated prior to our acquisition of HealthSun in December 2017 that continued after the acquisition.

HealthSun investigation has focused on risk adjustment practices initiated prior to our acquisition of HealthSun in December 2017 that continued after the acquisition.

We have voluntarily self-disclosed the existence of both of our investigations to CMS and the Criminal and Civil Divisions of the DOJ.

2 unchanged sentences

We have also asserted indemnity claims for escrowed funds under the HealthSun purchase agreement for, among other things, breach of healthcare and financial representation provisions, based on the conduct discovered during our investigation.

While certain elements of the escrow claims were resolved in the fourth quarter of 2021, there remains litigation in the Delaware Court of Chancery related to the remaining indemnity claims for escrowed funds.

While certain elements of the escrow claims were resolved in the fourth quarter of 2021, litigation in the Delaware Court of Chancery related to the remaining indemnity claims for escrowed funds remains ongoing.

Other Contingencies

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The new agreement supersedes certain prior agreements for such services and includes provisions for additional services not provided under those agreements.

Our remaining commitment under this agreement at June 30, 2022 is approximately $ 902 .

Our remaining commitment under this agreement at September 30, 2022 is approximately $ 830 .

We will have the ability to terminate the agreement upon the occurrence of certain events, subject to early termination fees.

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The declaration and payment of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors.

A summary of our cash dividend activity for the six months ended June 30, 2022 and 2021 is as follows:

A summary of our cash dividend activity for the nine months ended September 30, 2022 and 2021 is as follows:

Declaration Date Record Date Payment Date Cash

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

January 25, 2022 March 10, 2022 March 25, 2022 $ 1.28 $ 309

April 19, 2022 June 10, 2022 June 24, 2022 $ 1.28 $ 309

Six Months Ended June 30, 2021

July 19, 2022 September 9, 2022 September 23, 2022 $ 1.28 $ 306

Nine Months Ended September 30, 2021

January 26, 2021 March 10, 2021 March 25, 2021 $ 1.13 $ 277

April 20, 2021 June 10, 2021 June 25, 2021 $ 1.13 $ 278

On July 19, 2022, our Audit Committee declared a third quarter 2022 dividend to shareholders of $ 1.28 per share, payable on September 23, 2022 to shareholders of record at the close of business on September 9, 2022 .

July 20, 2021 September 10, 2021 September 24, 2021 $ 1.13 $ 276

On October 18, 2022, our Audit Committee declared a fourth quarter 2022 dividend to shareholders of $ 1.28 per share, payable on December 21, 2022 to shareholders of record at the close of business on December 5, 2022 .

Under our Board of Directors’ authorization, we maintain a common stock repurchase program.

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The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings.

A summary of common stock repurchases for the six months ended June 30, 2022 and 2021 is as follows:

Six Months Ended June 30

A summary of common stock repurchases for the nine months ended September 30, 2022 and 2021 is as follows:

Nine Months Ended September 30

Shares repurchased 3.7 3.9

4 unchanged sentences

Stock Incentive Plan s

A summary of stock option activity for the six months ended June 30, 2022 is as follows:

A summary of stock option activity for the nine months ended September 30, 2022 is as follows:

Shares Weighted-

5 unchanged sentences

Forfeited or expired ( 0.1 ) 339.52

Outstanding at June 30, 2022 3.0 290.27 6.81 $ 586

Exercisable at June 30, 2022 1.8 238.24 5.61 $ 439

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the six months ended June 30, 2022 is as follows:

Outstanding at September 30, 2022 2.9 291.95 6.56 $ 477

Exercisable at September 30, 2022 1.7 239.27 5.35 $ 370

A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the nine months ended September 30, 2022 is as follows:

and Units Weighted-

3 unchanged sentences

Forfeited ( 0.1 ) 345.25

Nonvested at June 30, 2022 1.2 355.01

During the six months ended June 30, 2022, we granted approximately 0.2 restricted stock units that are contingent upon us achieving earnings targets over the three year period from 2022 to 2024.

Nonvested at September 30, 2022 1.2 356.33

During the nine months ended September 30, 2022, we granted approximately 0.2 restricted stock units that are contingent upon us achieving earnings targets over the three year period from 2022 to 2024.

These grants have been included in the activity shown above, but will be subject to adjustment at the end of 2024 based on results in the three year period.

1 unchanged sentence

For a more detailed discussion of our stock incentive plan fair value methodology, see Note 15, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K.

The following weighted-average assumptions were used to estimate the fair values of options granted during the six months ended June 30, 2022 and 2021:

Six Months Ended June 30

The following weighted-average assumptions were used to estimate the fair values of options granted during the nine months ended September 30, 2022 and 2021:

Nine Months Ended September 30

Risk-free interest rate 1.97 % 1.44 %

2 unchanged sentences

Weighted-average expected life (years) 5.10 5.50

The following weighted-average fair values per option or share were determined for the six months ended June 30, 2022 and 2021:

Six Months Ended June 30

The following weighted-average fair values per option or share were determined for the nine months ended September 30, 2022 and 2021:

Nine Months Ended September 30

Options granted during the period $ 116.85 $ 79.51

1 unchanged sentence

Accumulated Other Comprehensive Loss

A reconciliation of the components of accumulated other comprehensive loss at June 30, 2022 and 2021 is as follows:

A reconciliation of the components of accumulated other comprehensive loss at September 30, 2022 and 2021 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

1 unchanged sentence

Beginning of period balance $ ( 1,489 ) $ 762 $ 494 $ 949

Other comprehensive (loss) income before reclassifications, net of tax benefit (expense) of $ 323 , $( 61 ), $ 677 and $ 46 , respectively

Other comprehensive loss before reclassifications, net of tax benefit of $ 220 , $ 25 , $ 896 and $ 71 , respectively

( 719 ) ( 80 ) ( 2,914 ) ( 203 )

1 unchanged sentence

80 ( 17 ) 284 ( 81 )

Other comprehensive (loss) income ( 922 ) 175 ( 1,991 ) ( 187 )

Other comprehensive loss (income) attributable to noncontrolling interests, net of tax (benefit) expense of $( 1 ), $ 1 , $( 3 ) and $ 1 , respectively

Other comprehensive loss ( 639 ) ( 97 ) ( 2,630 ) ( 284 )

Other comprehensive loss attributable to noncontrolling interests, net of tax benefit of $( 1 ), $ 0 , $( 4 ) and $( 1 ), respectively

End of period balance ( 2,125 ) 666 ( 2,125 ) 666

18 unchanged sentences

Total beginning of period accumulated other comprehensive (loss) ( 2,149 ) ( 17 ) ( 178 ) 150

Total other comprehensive (loss) income, net of tax benefit (expense) of $ 285 , $( 56 ), $ 617 and $ 54 , respectively

Total other comprehensive loss, net of tax benefit of $ 198 , $ 27 , $ 815 and $ 81 , respectively

( 638 ) ( 87 ) ( 2,617 ) ( 254 )

Total other comprehensive loss (income) attributable to noncontrolling interests, net of tax (benefit) expense of $( 1 ), $ 1 , $( 3 ) and $ 1 , respectively

Total other comprehensive loss attributable to noncontrolling interests, net of tax benefit of $( 1 ), $ 0 , $( 4 ) and $( 1 ), respectively

Total end of period accumulated other comprehensive loss $ ( 2,784 ) $ ( 103 ) $ ( 2,784 ) $ ( 103 )

Earnings per Share

The denominator for basic and diluted earnings per share for the three and six months ended June 30, 2022 and 2021 is as follows:

The denominator for basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

5 unchanged sentences

242.2 246.0 243.3 247.2

During the three months ended June 30, 2022 and 2021, weighted-average shares related to certain stock options of 0.5 and 0.3 , respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive.

During the six months ended June 30, 2022 and 2021, weighted-average shares related to certain stock options of 0.4 and 0.4 , respectively, were excluded from each of the denominators for diluted earnings per share because the stock options were anti-dilutive.

During the three and six months ended June 30, 2022, we issued approximately 0.0 and 0.5 restricted stock units under our stock incentive plans, 0.0 and 0.2 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2022 through 2024.

During the three and six months ended June 30, 2021, we issued approximately 0.0 and 0.9 restricted stock units under our stock incentive plans, 0.0 and 0.3 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2021 through 2023.

During the three months ended September 30, 2022 and 2021, weighted-average shares related to certain stock options of 0.5 and 0.0 , respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive.

During the nine months ended September 30, 2022 and 2021, weighted-average shares related to certain stock options of 0.4 and 0.3 , respectively, were excluded from each of the denominators for diluted earnings per share because the stock options were anti-dilutive.

During the three and nine months ended September 30, 2022, we issued approximately 0.0 and 0.6 restricted stock units under our stock incentive plans, 0.0 and 0.2 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2022 through 2024.

During the three and nine months ended September 30, 2021, we issued approximately 0.1 and 1.0 restricted stock units under our stock incentive plans, 0.0 and 0.3 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2021 through 2023.

The contingent restricted stock units have been excluded from the denominators for diluted earnings per share and will be included only if and when the contingency is met.

1 unchanged sentence

As discussed in Note 1 “Organization”, we will be organizing our brand portfolio into three core go-to-market brands over the next several years.

Currently, there are no changes to our segments associated with this branding strategy.

12 unchanged sentences

We define operating revenues to include premium income, product revenue and administrative fees and other revenues.

Operating revenues are derived from premiums and fees received, primarily from the sale and administration of health

benefits and pharmacy products and services.

Operating revenues are derived from premiums and fees received, primarily from the sale and administration of health benefits and pharmacy products and services.

Operating gain is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense.

1 unchanged sentence

These affiliated revenues are eliminated in consolidation.

Financial data by reportable segment for the three and six months ended June 30, 2022 and 2021 is as follows:

Financial data by reportable segment for the three and nine months ended September 30, 2022 and 2021 is as follows:

Business Government

Business IngenioRx Other Eliminations Total

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Operating revenue - unaffiliated $ 10,494 $ 24,571 $ 3,971 $ 589 $ — $ 39,625

1 unchanged sentence

Operating gain 785 868 516 101 — 2,270

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Operating revenue - unaffiliated $ 9,863 $ 21,658 $ 3,369 $ 658 $ — $ 35,548

1 unchanged sentence

Operating gain 620 967 445 27 — 2,059

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Operating revenue - unaffiliated $ 31,324 $ 72,164 $ 10,838 $ 1,667 $ — $ 115,993

1 unchanged sentence

Operating gain 2,673 2,653 1,393 365 — 7,084

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Operating revenue - unaffiliated $ 28,904 $ 61,007 $ 9,131 $ 1,883 $ — $ 100,925

1 unchanged sentence

Operating gain 2,679 2,313 1,257 52 — 6,301

The major product revenues for each of the reportable segments for the three and six months ended June 30, 2022 and 2021 are as follows:

The major product revenues for each of the reportable segments for the three and nine months ended September 30, 2022 and 2021 are as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

6 unchanged sentences

360 342 1,075 1,013

46 27 131 119

Total Commercial & Specialty Business

10 unchanged sentences

212 164 801 436

Total Other Business 3,298 2,517 6,519 4,887

Total Other 3,365 2,670 9,884 7,557

( 6,054 ) ( 5,192 ) ( 18,382 ) ( 15,173 )

3 unchanged sentences

Managed care products represent insurance products where we bear the insurance risk, whereas managed care services represent product offerings where we provide claims adjudication and other administrative services to the customer, but the customer principally bears the insurance risk.

A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and six months ended June 30, 2022 and 2021 is as follows:

A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

3 unchanged sentences

Total revenues $ 39,939 $ 35,822 $ 116,666 $ 102,058

A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and six months ended June 30, 2022 and 2021 is as follows:

A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 is as follows:

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

9 unchanged sentences

The information related to our leases is as follows:

Balance Sheet Location June 30, 2022 December 31, 2021

Balance Sheet Location September 30, 2022 December 31, 2021

Operating Leases

3 unchanged sentences

Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

2022 2021 2022 2021

7 unchanged sentences

Right-of-use assets obtained in exchange for new lease liabilities, operating leases $ 23 $ 32 $ 62 $ 192

As of June 30, 2022 and December 31, 2021, the weighted average remaining lease term of our operating leases was 7 years for each period.

The lease liabilities reflect a weighted average discount rate of 2.75 % at June 30, 2022 and 2.69 % at December 31, 2021.

As of September 30, 2022 and December 31, 2021, the weighted average remaining lease term of our operating leases was 7 years for each period.

The lease liabilities reflect a weighted average discount rate of 2.79 % at September 30, 2022 and 2.69 % at December 31, 2021.

Future lease payments for noncancellable operating leases with initial or remaining terms of one year or more are as follows:

2022 (excluding the six months ended June 30, 2022) $ 109

2022 (excluding the nine months ended September 30, 2022) $ 54

Thereafter 345

2 unchanged sentences

Total lease liabilities $ 921

As of June 30, 2022, we have no new leases which will commence during the second half of 2022.

As of September 30, 2022, we have no new leases which will commence during the fourth quarter of 2022.

Goodwill and Other Intangible Assets

A summary of the change in the carrying amount of goodwill for our segments (see Note 15, “Segment Information”) for 2022 and 2021 is as follows:

and Specialty

Business Government

4 unchanged sentences

Acquisitions and adjustments 18 126 — 9 153

Balance as of June 30, 2022 $ 11,611 $ 10,461 $ 59 $ 2,236 $ 24,367

Accumulated impairment as of June 30, 2022 $ — $ — $ — $ — $ —

The components of other intangible assets as of June 30, 2022 and December 31, 2021 are as follows:

June 30, 2022 December 31, 2021

Balance as of September 30, 2022 $ 11,611 $ 10,475 $ 59 $ 2,236 $ 24,381

Accumulated impairment as of September 30, 2022 $ — $ — $ — $ — $ —

The components of other intangible assets as of September 30, 2022 and December 31, 2021 are as follows:

September 30, 2022 December 31, 2021

Amount Accumulated

12 unchanged sentences

Other intangible assets $ 14,568 $ ( 4,032 ) $ 10,536 $ 14,121 $ ( 3,506 ) $ 10,615

During the three months ended June 30, 2022, we recorded intangible assets related to Integra and also reclassified $ 308 of trademarks with indefinite lives to intangible assets with finite lives - Other, which relates to our new branding strategy.

In addition, the amortization period of certain intangible assets is being shortened to align with the anticipated dates the new branding will take place.

During the nine months ended September 30, 2022, we recorded intangible assets related to Integra and also reclassified $ 308 of trademarks with indefinite lives to intangible assets with finite lives - Other, which relates to our new branding strategy.

In addition, the amortization period of certain intangible assets was shortened to align with the anticipated dates the new branding will take place.

Intangible assets, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year in which they become fully amortized.

As of June 30, 2022, the estimated amortization expense for the year ending December 31, 2022 and each of the five succeeding years is as follows:

As of September 30, 2022, the estimated amortization expense for the year ending December 31, 2022 and each of the five succeeding years is as follows:

2022, $ 748 ;

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements