What changed in this filing

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Item 1. Financial Statements

2023-08-02 compared with 2023-05-03 · 117 added, 40 removed, 401 unchanged (28% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(in millions, except per share data) March 31,

(in millions, except per share data) June 30,

2023 December 31,

40 unchanged sentences

Condensed Consolidated Statements of Operations

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended

(in millions, except per share data) 2023 2022 2023 2022

27 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended

(in millions) 2023 2022 2023 2022

Net earnings $ 5,657 $ 5,199 $ 11,431 $ 10,347

Other comprehensive income (loss):

Gross unrealized gains (losses) on investment securities during the period 640 ( 2,023 )

Other comprehensive (loss) income:

Gross unrealized (losses) gains on investment securities during the period ( 431 ) ( 1,331 ) 209 ( 3,354 )

Income tax effect 99 304 ( 48 ) 769

Total unrealized gains (losses), net of tax 493 ( 1,558 )

Gross reclassification adjustment for net realized losses (gains) included in net earnings 13 ( 3 )

Total unrealized (losses) gains, net of tax ( 332 ) ( 1,027 ) 161 ( 2,585 )

Gross reclassification adjustment for net realized gains included in net earnings ( 47 ) ( 1 ) ( 34 ) ( 4 )

Income tax effect 11 — 8 1

Total reclassification adjustment, net of tax

Total foreign currency translation gains 341 918

Other comprehensive income (loss) 844 ( 642 )

( 36 ) ( 1 ) ( 26 ) ( 3 )

Total foreign currency translation gains (losses) 267 ( 676 ) 608 242

Other comprehensive (loss) income ( 101 ) ( 1,704 ) 743 ( 2,346 )

Comprehensive income 5,556 3,495 12,174 8,001

7 unchanged sentences

(Loss) Income Nonredeemable Noncontrolling Interests Total

Three months ended March 31,

Three months ended June 30,

(in millions) Shares Amount Net Unrealized (Losses) Gains on Investments Foreign Currency Translation (Losses) Gains

Balance at March 31, 2023 932 $ 9 $ — $ 88,852 $ ( 2,275 ) $ ( 5,274 ) $ 4,509 $ 85,821

5,474 139 5,613

Other comprehensive (loss) income ( 368 ) 267 ( 101 )

Issuances of common stock, and related tax effects

Share-based compensation

Common share repurchases ( 6 ) — ( 442 ) ( 2,585 ) ( 3,027 )

Cash dividends paid on common shares ($ 1.88 per share)

( 1,747 ) ( 1,747 )

Redeemable noncontrolling interests fair value and other adjustments

Acquisition and other adjustments of nonredeemable noncontrolling interests

Distribution to nonredeemable noncontrolling interests

( 111 ) ( 111 )

Balance at June 30, 2023 927 $ 9 $ — $ 89,994 $ ( 2,643 ) $ ( 5,007 ) $ 5,015 $ 87,368

Balance at March 31, 2022 939 $ 10 $ — $ 78,782 $ ( 1,137 ) $ ( 4,889 ) $ 3,362 $ 76,128

5,070 94 5,164

Other comprehensive loss ( 1,028 ) ( 676 ) ( 1,704 )

Issuances of common stock, and related tax effects

Share-based compensation

Common share repurchases ( 5 ) — ( 733 ) ( 1,767 ) ( 2,500 )

Cash dividends paid on common shares ($ 1.65 per share)

( 1,545 ) ( 1,545 )

Redeemable noncontrolling interests fair value and other adjustments

Acquisition and other adjustments of nonredeemable noncontrolling interests 12 12

Distribution to nonredeemable noncontrolling interests

( 83 ) ( 83 )

Balance at June 30, 2022 935 $ 10 $ — $ 80,540 $ ( 2,165 ) $ ( 5,565 ) $ 3,385 $ 76,205

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Changes in Equity

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive

(Loss) Income Nonredeemable Noncontrolling Interests Total

Six 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

11 unchanged sentences

( 212 ) ( 212 )

Balance at March 31, 2023 932 $ 9 $ — $ 88,852 $ ( 2,275 ) $ ( 5,274 ) $ 4,509 $ 85,821

Balance at June 30, 2023 927 $ 9 $ — $ 89,994 $ ( 2,643 ) $ ( 5,007 ) $ 5,015 $ 87,368

Balance at January 1, 2022 941 $ 10 $ — $ 77,134 $ 423 $ ( 5,807 ) $ 3,285 $ 75,045

7 unchanged sentences

Redeemable noncontrolling interests fair value and other adjustments

( 131 ) ( 131 )

Acquisition and other adjustments of nonredeemable noncontrolling interests 103 103

1 unchanged sentence

( 185 ) ( 185 )

Balance at March 31, 2022 939 $ 10 $ — $ 78,782 $ ( 1,137 ) $ ( 4,889 ) $ 3,362 $ 76,128

Balance at June 30, 2022 935 $ 10 $ — $ 80,540 $ ( 2,165 ) $ ( 5,565 ) $ 3,385 $ 76,205

See Notes to the Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended

(in millions) 2023 2022

54 unchanged sentences

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 .

As of June 30, 2023 and December 31, 2022, accounts receivable related to products and services were $ 7.7 billion and $ 7.1 billion, respectively.

As of June 30, 2023, revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts having an original expected duration of one year or less, contracts where revenue recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, was $ 12.2 billion, of which approximately half is expected to be recognized in the next three years .

A summary of debt securities by major security type is as follows:

(in millions) Amortized

March 31, 2023

June 30, 2023

Debt securities - available-for-sale:

25 unchanged sentences

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 held $ 4.2 billion and $ 3.7 billion of equity securities as of June 30, 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.

The amortized cost and fair value of debt securities as of March 31, 2023, by contractual maturity, were as follows:

Additionally, the Company’s investments included $ 1.4 billion and $ 1.5 billion of equity method investments in operating businesses in the health care sector as of June 30, 2023 and December 31, 2022, respectively.

The allowance for credit losses on held-to-maturity securities at June 30, 2023 and December 31, 2022 was not material.

The amortized cost and fair value of debt securities as of June 30, 2023, by contractual maturity, were as follows:

Available-for-Sale Held-to-Maturity

11 unchanged sentences

(in millions) Fair

March 31, 2023

June 30, 2023

Debt securities - available-for-sale:

17 unchanged sentences

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 Company’s unrealized losses from debt securities as of June 30, 2023 were generated from approximately 35,000 positions out of a total of 41,000 positions.

The Company believes that it will timely collect the 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.

1 unchanged sentence

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.

As of June 30, 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.

The allowance for credit losses on available-for-sale debt securities at June 30, 2023 and December 31, 2022 was not material.

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.

7 unchanged sentences

Fair and Carrying

March 31, 2023

June 30, 2023

Cash and cash equivalents $ 41,763 $ 50 $ — $ 41,813

23 unchanged sentences

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.

There were no transfers in or out of Level 3 financial assets or liabilities during the six months ended June 30, 2023 or 2022.

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:

4 unchanged sentences

Value Total Carrying Value

March 31, 2023

June 30, 2023

Debt securities - held-to-maturity $ 651 $ 75 $ — $ 726 $ 740

4 unchanged sentences

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.

There were no significant fair value adjustments for these assets and liabilities recorded during the six months ended June 30, 2023 or 2022.

Medical Costs Payable

The following table shows the components of the change in medical costs payable for the three months ended March 31:

The following table shows the components of the change in medical costs payable for the six months ended June 30:

(in millions) 2023 2022

11 unchanged sentences

Medical costs payable, end of period $ 31,947 $ 28,978

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.

For the six months ended June 30, 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 $ 22.0 billion and $ 20.0 billion at June 30, 2023 and December 31, 2022, respectively.

Short-Term Borrowings and Long-Term Debt

5 unchanged sentences

5.200 % notes due April 2063

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 %.

As of June 30, 2023, the Company had $ 4.4 billion of commercial paper outstanding, with a weighted-average annual interest rate of 5.1 %.

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.

In June 2023, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual rate of $7.52 compared to $6.60 per share, which the Company had paid since June 2022.

Declaration and payment of future quarterly dividends is at the discretion of the Board of Directors and may be adjusted as business needs or market conditions change.

The following table provides details of the Company’s dividend payments during the six months ended June 30, 2023:

Payment Date Amount per Share Total Amount Paid

(in millions)

March 21 $ 1.65 $ 1,537

June 27 1.88 1,747

Commitments and Contingencies

Pending Acquisitions

As of June 30, 2023, the Company has entered into agreements to acquire companies in the health care sector, subject to regulatory approval and other customary closing conditions.

The total anticipated consideration required for these acquisitions, excluding the payoff of acquired indebtedness, is approximately $ 5 billion.

Legal Matters

27 unchanged sentences

Business Combinations

During the three months ended March 31, 2023, the Company completed several business combinations for total consideration of $ 8.0 billion.

During the six months ended June 30, 2023, the Company completed several business combinations for total consideration of $ 8.2 billion.

Acquired assets (liabilities) at acquisition date were:

26 unchanged sentences

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.

Through June 30, 2023, acquired entities impact on revenues and net earnings was not material.

Unaudited pro forma revenues and net earnings for the six months ended June 30, 2023 and 2022, as if the business combinations had occurred on January 1, 2022, were immaterial for both periods.

Segment Financial Information

1 unchanged sentence

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.

Total assets at Optum Health increased to $ 80.8 billion as of June 30, 2023 compared to $ 69.0 billion as of December 31, 2022, primarily due to goodwill from business combinations of $ 7.0 billion.

The following tables present reportable segment financial information:

1 unchanged sentence

Eliminations Consolidated

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Revenues - unaffiliated customers:

13 unchanged sentences

$ 4,358 $ 1,525 $ 968 $ 1,206 $ — $ 3,699 $ ( 828 ) $ 7,229

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Revenues - unaffiliated customers:

13 unchanged sentences

$ 3,850 $ 1,399 $ 839 $ 1,044 $ — $ 3,282 $ ( 467 ) $ 6,665

(in millions) UnitedHealthcare Optum Health Optum Insight Optum Rx Optum Eliminations Optum Corporate and

Eliminations Consolidated

Six Months Ended June 30, 2023

Revenues - unaffiliated customers:

Premiums $ 134,505 $ 10,755 $ — $ — $ — $ 10,755 $ — $ 145,260

Products — 95 79 20,744 — 20,918 — 20,918

Services 5,139 6,630 3,921 1,053 — 11,604 — 16,743

Total revenues - unaffiliated customers

139,644 17,480 4,000 21,797 — 43,277 — 182,921

Total revenues - affiliated customers

— 28,720 5,125 34,175 ( 1,752 ) 66,268 ( 66,268 ) —

Investment and other income

1,055 721 45 92 — 858 — 1,913

Total revenues $ 140,699 $ 46,921 $ 9,170 $ 56,064 $ ( 1,752 ) $ 110,403 $ ( 66,268 ) $ 184,834

Earnings from operations $ 8,701 $ 3,301 $ 1,875 $ 2,266 $ — $ 7,442 $ — $ 16,143

Interest expense — — — — — — ( 1,582 ) ( 1,582 )

Earnings before income taxes

$ 8,701 $ 3,301 $ 1,875 $ 2,266 $ — $ 7,442 $ ( 1,582 ) $ 14,561

Six Months Ended June 30, 2022

Revenues - unaffiliated customers:

Premiums $ 119,305 $ 8,661 $ — $ — $ — $ 8,661 $ — $ 127,966

Products — 12 98 18,726 — 18,836 — 18,836

Services 5,057 5,298 2,008 654 — 7,960 — 13,017

Total revenues - unaffiliated customers

124,362 13,971 2,106 19,380 — 35,457 — 159,819

Total revenues - affiliated customers

— 20,053 4,319 29,329 ( 1,141 ) 52,560 ( 52,560 ) —

Investment and other income

338 241 76 7 — 324 — 662

Total revenues $ 124,700 $ 34,265 $ 6,501 $ 48,716 $ ( 1,141 ) $ 88,341 $ ( 52,560 ) $ 160,481

Earnings from operations $ 7,648 $ 2,765 $ 1,686 $ 1,983 $ — $ 6,434 $ — $ 14,082

Interest expense — — — — — — ( 900 ) ( 900 )

Earnings before income taxes

$ 7,648 $ 2,765 $ 1,686 $ 1,983 $ — $ 6,434 $ ( 900 ) $ 13,182

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