UNITEDHEALTH GROUP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS UnitedHealth Group Condensed Consolidated Balance Sheets (Unaudited) (in millions, except per share data) March 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 41,913 $ 23,365 Short-term investments 4,584 4,546 Accounts receivable, net 22,414 17,681 Other current receivables, net 14,696 12,769 Assets under management 3,837 4,087 Prepaid expenses and other current assets 6,451 6,621 Total current assets 93,895 69,069 Long-term investments 46,884 43,728 Property, equipment and capitalized software, net 10,637 10,128 Goodwill 100,406 93,352 Other intangible assets, net 16,165 14,401 Other assets 15,692 15,027 Total assets $ 283,679 $ 245,705 Liabilities, redeemable noncontrolling interests and equity Current liabilities: Medical costs payable $ 31,809 $ 29,056 Accounts payable and accrued liabilities 29,856 27,715 Short-term borrowings and current maturities of long-term debt 9,931 3,110 Unearned revenues 14,487 3,075 Other current liabilities 30,399 26,281 Total current liabilities 116,482 89,237 Long-term debt, less current maturities 60,657 54,513 Deferred income taxes 2,834 2,769 Other liabilities 13,084 12,839 Total liabilities 193,057 159,358 Commitments and contingencies (Note 6) Redeemable noncontrolling interests 4,801 4,897 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; 932 and 934 issued and outstanding 9 9 Retained earnings 88,852 86,156 Accumulated other comprehensive loss ( 7,549 ) ( 8,393 ) Nonredeemable noncontrolling interests 4,509 3,678 Total equity 85,821 81,450 Total liabilities, redeemable noncontrolling interests and equity $ 283,679 $ 245,705 See Notes to the Condensed Consolidated Financial Statements 1 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (in millions, except per share data) 2023 2022 Revenues: Premiums $ 72,786 $ 64,070 Products 10,267 9,340 Services 8,080 6,372 Investment and other income 798 367 Total revenues 91,931 80,149 Operating costs: Medical costs 59,845 52,523 Operating costs 13,625 11,401 Cost of products sold 9,405 8,487 Depreciation and amortization 970 788 Total operating costs 83,845 73,199 Earnings from operations 8,086 6,950 Interest expense ( 754 ) ( 433 ) Earnings before income taxes 7,332 6,517 Provision for income taxes ( 1,558 ) ( 1,369 ) Net earnings 5,774 5,148 Earnings attributable to noncontrolling interests ( 163 ) ( 121 ) Net earnings attributable to UnitedHealth Group common shareholders $ 5,611 $ 5,027 Earnings per share attributable to UnitedHealth Group common shareholders: Basic $ 6.01 $ 5.34 Diluted $ 5.95 $ 5.27 Basic weighted-average number of common shares outstanding 933 941 Dilutive effect of common share equivalents 10 13 Diluted weighted-average number of common shares outstanding 943 954 Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents 5 2 See Notes to the Condensed Consolidated Financial Statements 2 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, (in millions) 2023 2022 Net earnings $ 5,774 $ 5,148 Other comprehensive income (loss): Gross unrealized gains (losses) on investment securities during the period 640 ( 2,023 ) Income tax effect ( 147 ) 465 Total unrealized gains (losses), net of tax 493 ( 1,558 ) Gross reclassification adjustment for net realized losses (gains) included in net earnings 13 ( 3 ) Income tax effect ( 3 ) 1 Total reclassification adjustment, net of tax 10 ( 2 ) Total foreign currency translation gains 341 918 Other comprehensive income (loss) 844 ( 642 ) Comprehensive income 6,618 4,506 Comprehensive income attributable to noncontrolling interests ( 163 ) ( 121 ) Comprehensive income attributable to UnitedHealth Group common shareholders $ 6,455 $ 4,385 See Notes to the Condensed Consolidated Financial Statements 3 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Changes in Equity (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Nonredeemable Noncontrolling Interests Total Equity Three months ended March 31, (in millions) Shares Amount Net Unrealized (Losses) Gains on Investments Foreign Currency Translation (Losses) Gains Balance at January 1, 2023 934 $ 9 $ — $ 86,156 $ ( 2,778 ) $ ( 5,615 ) $ 3,678 $ 81,450 Net earnings 5,611 113 5,724 Other comprehensive income 503 341 844 Issuances of common stock, and related tax effects 2 — 350 350 Share-based compensation 366 366 Common share repurchases ( 4 ) — ( 633 ) ( 1,378 ) ( 2,011 ) Cash dividends paid on common shares ($ 1.65 per share) ( 1,537 ) ( 1,537 ) Redeemable noncontrolling interests fair value and other adjustments ( 83 ) ( 83 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 819 819 Distribution to nonredeemable noncontrolling interests ( 101 ) ( 101 ) Balance at March 31, 2023 932 $ 9 $ — $ 88,852 $ ( 2,275 ) $ ( 5,274 ) $ 4,509 $ 85,821 Balance at January 1, 2022 941 $ 10 $ — $ 77,134 $ 423 $ ( 5,807 ) $ 3,285 $ 75,045 Net earnings 5,027 88 5,115 Other comprehensive (loss) income ( 1,560 ) 918 ( 642 ) Issuances of common stock, and related tax effects 3 — 333 333 Share-based compensation 282 282 Common share repurchases ( 5 ) — ( 484 ) ( 2,016 ) ( 2,500 ) Cash dividends paid on common shares ($ 1.45 per share) ( 1,363 ) ( 1,363 ) Redeemable noncontrolling interests fair value and other adjustments ( 131 ) ( 131 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 91 91 Distribution to nonredeemable noncontrolling interests ( 102 ) ( 102 ) Balance at March 31, 2022 939 $ 10 $ — $ 78,782 $ ( 1,137 ) $ ( 4,889 ) $ 3,362 $ 76,128 See Notes to the Condensed Consolidated Financial Statements 4 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in millions) 2023 2022 Operating activities Net earnings $ 5,774 $ 5,148 Noncash items: Depreciation and amortization 970 788 Deferred income taxes ( 332 ) 161 Share-based compensation 362 299 Other, net 69 17 Net change in other operating items, net of effects from acquisitions and changes in AARP balances: Accounts receivable ( 4,306 ) ( 4,521 ) Other assets ( 1,875 ) ( 1,089 ) Medical costs payable 2,467 3,849 Accounts payable and other liabilities 1,796 589 Unearned revenues 11,402 78 Cash flows from operating activities 16,327 5,319 Investing activities Purchases of investments ( 4,894 ) ( 4,982 ) Sales of investments 456 1,591 Maturities of investments 2,119 1,759 Cash paid for acquisitions, net of cash assumed ( 7,826 ) ( 1,231 ) Purchases of property, equipment and capitalized software ( 760 ) ( 555 ) Other, net ( 115 ) ( 255 ) Cash flows used for investing activities ( 11,020 ) ( 3,673 ) Financing activities Common share repurchases ( 2,000 ) ( 2,500 ) Cash dividends paid ( 1,537 ) ( 1,363 ) Proceeds from common stock issuances 344 551 Repayments of long-term debt ( 1,375 ) ( 1,100 ) Proceeds from short-term borrowings, net 7,349 3,148 Proceeds from issuance of long-term debt 6,401 — Customer funds administered 5,012 5,120 Other, net ( 1,004 ) ( 1,552 ) Cash flows from financing activities 13,190 2,304 Effect of exchange rate changes on cash and cash equivalents 51 157 Increase in cash and cash equivalents 18,548 4,107 Cash and cash equivalents, beginning of period 23,365 21,375 Cash and cash equivalents, end of period $ 41,913 $ 25,482 See Notes to the Condensed Consolidated Financial Statements 5 Table of Contents UnitedHealth Group Notes to the Condensed Consolidated Financial Statements (Unaudited) 1. Basis of Presentation UnitedHealth Group Incorporated (individually and together with its subsidiaries, “UnitedHealth Group” and the “Company”) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two distinct, yet complementary business platforms — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations the Company is privileged to serve. The Company has prepared the Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. The year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited Consolidated Financial Statements. Therefore, these Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and the Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC (2022 10-K). The accompanying Condensed Consolidated Financial Statements include all normal recurring adjustments necessary to present the interim financial statements fairly. Use of Estimates These Condensed Consolidated Financial Statements include certain amounts based on the Company’s best estimates and judgments. The Company’s most significant estimates relate to estimates and judgments for medical costs payable and goodwill. Certain of these estimates require the application of complex assumptions and judgments, often because they involve matters that are inherently uncertain and will likely change in subsequent periods. The impact of any change in estimates is included in earnings in the period in which the estimate is adjusted. Revenues - Products and Services As of March 31, 2023 and December 31, 2022, accounts receivable related to products and services were $ 8.1 billion and $ 7.1 billion, respectively. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracting having an original expected duration of one year or less, contracts where revenue recognized as invoiced and contracts with variable consideration related undelivered performance obligations, was $ 12.3 billion, of which approximately half is expected to be recognized in the next three years . 6 Table of Contents 2. Investments A summary of debt securities by major security type is as follows: (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2023 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,760 $ 5 $ ( 236 ) $ 4,529 State and municipal obligations 8,055 65 ( 365 ) 7,755 Corporate obligations 24,149 59 ( 1,525 ) 22,683 U.S. agency mortgage-backed securities 8,213 35 ( 708 ) 7,540 Non-U.S. agency mortgage-backed securities 3,156 1 ( 283 ) 2,874 Total debt securities - available-for-sale 48,333 165 ( 3,117 ) 45,381 Debt securities - held-to-maturity: U.S. government and agency obligations 594 — ( 10 ) 584 State and municipal obligations 28 — ( 3 ) 25 Corporate obligations 60 — — 60 Total debt securities - held-to-maturity 682 — ( 13 ) 669 Total debt securities $ 49,015 $ 165 $ ( 3,130 ) $ 46,050 December 31, 2022 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,093 $ 1 $ ( 285 ) $ 3,809 State and municipal obligations 7,702 25 ( 479 ) 7,248 Corporate obligations 23,675 17 ( 1,798 ) 21,894 U.S. agency mortgage-backed securities 7,379 15 ( 808 ) 6,586 Non-U.S. agency mortgage-backed securities 3,077 1 ( 294 ) 2,784 Total debt securities - available-for-sale 45,926 59 ( 3,664 ) 42,321 Debt securities - held-to-maturity: U.S. government and agency obligations 578 — ( 14 ) 564 State and municipal obligations 29 — ( 3 ) 26 Corporate obligations 89 — — 89 Total debt securities - held-to-maturity 696 — ( 17 ) 679 Total debt securities $ 46,622 $ 59 $ ( 3,681 ) $ 43,000 The Company held $ 3.9 billion and $ 3.7 billion of equity securities as of March 31, 2023 and December 31, 2022, respectively. The Company’s investments in equity securities primarily consist of employee savings plan related investments, venture investments and shares of Brazilian real denominated fixed-income funds with readily determinable fair values. Additionally, the Company’s investments included $ 1.5 billion of equity method investments in operating businesses in the health care sector as of March 31, 2023 and December 31, 2022. The allowance for credit losses on held-to-maturity securities at March 31, 2023 and December 31, 2022 was not material. 7 Table of Contents The amortized cost and fair value of debt securities as of March 31, 2023, by contractual maturity, were as follows: Available-for-Sale Held-to-Maturity (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 4,722 $ 4,691 $ 377 $ 376 Due after one year through five years 14,356 13,708 261 254 Due after five years through ten years 12,240 11,217 24 22 Due after ten years 5,646 5,351 20 17 U.S. agency mortgage-backed securities 8,213 7,540 — — Non-U.S. agency mortgage-backed securities 3,156 2,874 — — Total debt securities $ 48,333 $ 45,381 $ 682 $ 669 The fair value of available-for-sale debt securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position were as follows: 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, 2023 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,279 $ ( 12 ) $ 1,825 $ ( 224 ) $ 3,104 $ ( 236 ) State and municipal obligations 1,898 ( 30 ) 3,110 ( 335 ) 5,008 ( 365 ) Corporate obligations 6,337 ( 178 ) 12,443 ( 1,347 ) 18,780 ( 1,525 ) U.S. agency mortgage-backed securities 1,589 ( 55 ) 4,274 ( 653 ) 5,863 ( 708 ) Non-U.S. agency mortgage-backed securities 783 ( 26 ) 1,989 ( 257 ) 2,772 ( 283 ) Total debt securities - available-for-sale $ 11,886 $ ( 301 ) $ 23,641 $ ( 2,816 ) $ 35,527 $ ( 3,117 ) December 31, 2022 Debt securities - available-for-sale: U.S. government and agency obligations $ 2,007 $ ( 96 ) $ 1,290 $ ( 189 ) $ 3,297 $ ( 285 ) State and municipal obligations 4,630 ( 288 ) 1,178 ( 191 ) 5,808 ( 479 ) Corporate obligations 13,003 ( 893 ) 6,637 ( 905 ) 19,640 ( 1,798 ) U.S. agency mortgage-backed securities 3,561 ( 345 ) 2,239 ( 463 ) 5,800 ( 808 ) Non-U.S. agency mortgage-backed securities 1,698 ( 128 ) 976 ( 166 ) 2,674 ( 294 ) Total debt securities - available-for-sale $ 24,899 $ ( 1,750 ) $ 12,320 $ ( 1,914 ) $ 37,219 $ ( 3,664 ) The Company’s unrealized losses from debt securities as of March 31, 2023 were generated from approximately 32,000 positions out of a total of 42,000 positions. The Company believes that it will collect the timely principal and interest due on its debt securities that have an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities which impacted the Company’s assessment on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the expected cash flows, the underlying credit quality and credit ratings of the issuers noting no significant credit deterioration since purchase. As of March 31, 2023, the Company did not have the intent to sell any of the available-for-sale debt securities in an unrealized loss position. Therefore, the Company believes these losses to be temporary. The allowance for credit losses on available-for-sale debt securities at March 31, 2023 and December 31, 2022 was not material. 8 Table of Contents 3. Fair Value Certain assets and liabilities are measured at fair value in the Condensed Consolidated Financial Statements or have fair values disclosed in the Notes to the Condensed Consolidated Financial Statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 4 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2022 10-K. The following table presents a summary of fair value measurements by level and carrying values for items measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (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, 2023 Cash and cash equivalents $ 41,851 $ 62 $ — $ 41,913 Debt securities - available-for-sale: U.S. government and agency obligations 4,122 407 — 4,529 State and municipal obligations — 7,755 — 7,755 Corporate obligations 16 22,486 181 22,683 U.S. agency mortgage-backed securities — 7,540 — 7,540 Non-U.S. agency mortgage-backed securities — 2,874 — 2,874 Total debt securities - available-for-sale 4,138 41,062 181 45,381 Equity securities 2,128 35 70 2,233 Assets under management 1,491 2,245 101 3,837 Total assets at fair value $ 49,608 $ 43,404 $ 352 $ 93,364 Percentage of total assets at fair value 53 % 46 % 1 % 100 % December 31, 2022 Cash and cash equivalents $ 23,202 $ 163 $ — $ 23,365 Debt securities - available-for-sale: U.S. government and agency obligations 3,505 304 — 3,809 State and municipal obligations — 7,248 — 7,248 Corporate obligations 7 21,695 192 21,894 U.S. agency mortgage-backed securities — 6,586 — 6,586 Non-U.S. agency mortgage-backed securities — 2,784 — 2,784 Total debt securities - available-for-sale 3,512 38,617 192 42,321 Equity securities 2,043 35 70 2,148 Assets under management 1,788 2,203 96 4,087 Total assets at fair value $ 30,545 $ 41,018 $ 358 $ 71,921 Percentage of total assets at fair value 42 % 57 % 1 % 100 % There were no transfers in or out of Level 3 financial assets or liabilities during the three months ended March 31, 2023 or 2022. 9 Table of Contents The following table presents a summary of fair value measurements by level and carrying values for certain financial instruments not measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (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, 2023 Debt securities - held-to-maturity $ 595 $ 74 $ — $ 669 $ 682 Long-term debt and other financing obligations $ — $ 60,307 $ — $ 60,307 $ 62,360 December 31, 2022 Debt securities - held-to-maturity $ 577 $ 102 $ — $ 679 $ 696 Long-term debt and other financing obligations $ — $ 53,626 $ — $ 53,626 $ 56,823 Nonfinancial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when the Company records an impairment. There were no significant fair value adjustments for these assets and liabilities recorded during the three months ended March 31, 2023 or 2022. 4. Medical Costs Payable The following table shows the components of the change in medical costs payable for the three months ended March 31: (in millions) 2023 2022 Medical costs payable, beginning of period $ 29,056 $ 24,483 Acquisitions 1 8 Reported medical costs: Current year 60,315 52,813 Prior years ( 470 ) ( 290 ) Total reported medical costs 59,845 52,523 Medical payments: Payments for current year ( 35,087 ) ( 29,589 ) Payments for prior years ( 22,006 ) ( 18,749 ) Total medical payments ( 57,093 ) ( 48,338 ) Medical costs payable, end of period $ 31,809 $ 28,676 For the three months ended March 31, 2023 and 2022, prior years’ medical cost reserve development included no individual factors that were significant. Medical costs payable included reserves for claims incurred by insured customers but not yet reported to the Company of $ 21.7 billion and $ 20.0 billion at March 31, 2023 and December 31, 2022, respectively. 10 Table of Contents 5. Short-Term Borrowings and Long-Term Debt In March 2023, the Company issued $ 6.5 billion of senior unsecured notes consisting of the following: (in millions, except percentages) Par Value 4.250 % notes due January 2029 $ 1,250 4.500 % notes due April 2033 1,500 5.050 % notes due April 2053 2,000 5.200 % notes due April 2063 1,750 As of March 31, 2023, the Company had $ 8.2 billion of commercial paper outstanding, with a weighted-average annual interest rate of 5.2 %. For more information on the Company’s short-term borrowings, debt covenants and long-term debt, see Note 8 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2022 10-K. 6. Commitments and Contingencies Legal Matters The Company is frequently made party to a variety of legal actions and regulatory inquiries, including class actions and suits brought by members, care providers, consumer advocacy organizations, customers and regulators, relating to the Company’s businesses, including management and administration of health benefit plans and other services. These matters include medical malpractice, employment, intellectual property, antitrust, privacy and contract claims and claims related to health care benefits coverage and other business practices. The Company records liabilities for its estimates of probable costs resulting from these matters where appropriate. Estimates of costs resulting from legal and regulatory matters involving the Company are inherently difficult to predict, particularly where the matters: involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or represent a shift in regulatory policy; involve a large number of claimants or regulatory bodies; are in the early stages of the proceedings; or could result in a change in business practices. Accordingly, the Company is often unable to estimate the losses or ranges of losses for those matters where there is a reasonable possibility or it is probable a loss may be incurred. Government Investigations, Audits and Reviews The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by the Centers for Medicare and Medicaid Services (CMS), state insurance and health and welfare departments, state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office of Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the U.S. Department of Justice (DOJ), the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau (CFPB), the Defense Contract Audit Agency and other governmental authorities. Similarly, our international businesses are also subject to investigations, audits and reviews by applicable foreign governments, including South American and other non-U.S. governmental authorities. Certain of the Company’s businesses have been reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements under the Medicare risk-adjustment model. CMS has selected certain of the Company’s local plans for risk adjustment data validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers and such audits may result in retrospective adjustments to payments made to the Company’s health plans. On February 14, 2017, the DOJ announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges the Company made improper risk adjustment submissions and violated the False Claims Act. On February 12, 2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, the DOJ moved to dismiss the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the court denied the government’s motion for partial summary judgment and dismissed the Company’s counterclaims without prejudice. The Company cannot reasonably estimate the outcome which may result from this matter given its procedural status. 11 Table of Contents 7. Business Combinations During the three months ended March 31, 2023, the Company completed several business combinations for total consideration of $ 8.0 billion. Acquired assets (liabilities) at acquisition date were: (in millions) Cash and cash equivalents $ 142 Accounts receivable and other current assets 530 Property, equipment and other long-term assets 659 Other intangible assets 2,141 Total identifiable assets acquired 3,472 Medical costs payable ( 1 ) Accounts payable and other current liabilities ( 467 ) Other long-term liabilities ( 698 ) Total identifiable liabilities acquired ( 1,166 ) Total net identifiable assets 2,306 Goodwill 6,646 Redeemable noncontrolling interests ( 130 ) Nonredeemable noncontrolling interests ( 819 ) Net assets acquired $ 8,003 The majority of goodwill is not deductible for income tax purposes. The preliminary purchase price allocations for the various business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent liabilities, are finalized. The acquisition date fair values and weighted-average useful lives assigned to intangible assets were: (in millions, except years) Fair Value Weighted-Average Useful Life Acquired finite-lived intangible assets: Customer-related $ 234 13 years Trademarks and technology 220 5 years Other 10 11 years Total acquired finite-lived intangible assets 464 9 years Total acquired indefinite-lived intangible assets - operating licenses and certificates 1,677 Total acquired intangible assets $ 2,141 The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results and the results of the corresponding operating segment as of the date of acquisition. Through March 31, 2023, acquired entities impact on revenues and net earnings was not material. Unaudited pro forma revenues and net earnings for the three months ended March 31, 2023 and 2022, as if the business combinations had occurred on January 1, 2022, were immaterial for both periods. 12 Table of Contents 8. Segment Financial Information The Company’s four reportable segments are UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. For more information on the Company’s segments, see Part I, Item I, “Business” and Note 14 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2022 10-K. Total assets at Optum Health increased to $ 80.4 billion as of March 31, 2023 compared to $ 69.0 billion as of December 31, 2022, primarily due to goodwill from business combinations of $ 5.9 billion. The following tables present reportable segment financial information: Optum (in millions) UnitedHealthcare Optum Health Optum Insight Optum Rx Optum Eliminations Optum Corporate and Eliminations Consolidated Three Months Ended March 31, 2023 Revenues - unaffiliated customers: Premiums $ 67,458 $ 5,328 $ — $ — $ — $ 5,328 $ — $ 72,786 Products — 44 40 10,183 — 10,267 — 10,267 Services 2,555 3,089 1,926 510 — 5,525 — 8,080 Total revenues - unaffiliated customers 70,013 8,461 1,966 10,693 — 21,120 — 91,133 Total revenues - affiliated customers — 14,266 2,510 16,679 ( 859 ) 32,596 ( 32,596 ) — Investment and other income 455 277 20 46 — 343 — 798 Total revenues $ 70,468 $ 23,004 $ 4,496 $ 27,418 $ ( 859 ) $ 54,059 $ ( 32,596 ) $ 91,931 Earnings from operations $ 4,343 $ 1,776 $ 907 $ 1,060 $ — $ 3,743 $ — $ 8,086 Interest expense — — — — — — ( 754 ) ( 754 ) Earnings before income taxes $ 4,343 $ 1,776 $ 907 $ 1,060 $ — $ 3,743 $ ( 754 ) $ 7,332 Three Months Ended March 31, 2022 Revenues - unaffiliated customers: Premiums $ 59,937 $ 4,133 $ — $ — $ — $ 4,133 $ — $ 64,070 Products — 6 40 9,294 — 9,340 — 9,340 Services 2,515 2,558 974 325 — 3,857 — 6,372 Total revenues - unaffiliated customers 62,452 6,697 1,014 9,619 — 17,330 — 79,782 Total revenues - affiliated customers — 9,829 2,138 14,291 ( 553 ) 25,705 ( 25,705 ) — Investment and other income 143 156 67 1 — 224 — 367 Total revenues $ 62,595 $ 16,682 $ 3,219 $ 23,911 $ ( 553 ) $ 43,259 $ ( 25,705 ) $ 80,149 Earnings from operations $ 3,798 $ 1,366 $ 847 $ 939 $ — $ 3,152 $ — $ 6,950 Interest expense — — — — — — ( 433 ) ( 433 ) Earnings before income taxes $ 3,798 $ 1,366 $ 847 $ 939 $ — $ 3,152 $ ( 433 ) $ 6,517 13 Table of Contents