UNITEDHEALTH GROUP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS UnitedHealth Group Condensed Consolidated Balance Sheets (Unaudited) (in millions, except per share data) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 30,717 $ 25,312 Short-term investments 3,574 3,801 Accounts receivable, net 26,936 22,365 Other current receivables, net 26,022 26,089 Prepaid expenses and other current assets 9,036 8,212 Total current assets 96,285 85,779 Long-term investments 51,863 52,354 Property, equipment and capitalized software, net 10,734 10,553 Goodwill 107,566 106,734 Other intangible assets, net 22,947 23,268 Other assets 20,395 19,590 Total assets $ 309,790 $ 298,278 Liabilities, redeemable noncontrolling interests and equity Current liabilities: Medical costs payable $ 37,136 $ 34,224 Accounts payable and accrued liabilities 33,566 34,337 Short-term borrowings and current maturities of long-term debt 9,986 4,545 Unearned revenues 3,296 3,317 Other current liabilities 29,487 27,346 Total current liabilities 113,471 103,769 Long-term debt, less current maturities 71,285 72,359 Deferred income taxes 3,902 3,620 Other liabilities 15,963 15,939 Total liabilities 204,621 195,687 Commitments and contingencies (Note 6) Redeemable noncontrolling interests 4,358 4,323 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; 910 and 915 issued and outstanding 9 9 Retained earnings 97,934 96,036 Accumulated other comprehensive loss ( 2,905 ) ( 3,387 ) Nonredeemable noncontrolling interests 5,773 5,610 Total equity 100,811 98,268 Total liabilities, redeemable noncontrolling interests and equity $ 309,790 $ 298,278 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) 2025 2024 Revenues: Premiums $ 86,534 $ 77,988 Products 13,036 11,909 Services 8,972 8,888 Investment and other income 1,033 1,011 Total revenues 109,575 99,796 Operating costs: Medical costs 73,411 65,735 Operating costs 13,594 14,077 Cost of products sold 12,390 11,056 Depreciation and amortization 1,061 997 Total operating costs 100,456 91,865 Earnings from operations 9,119 7,931 Interest expense ( 998 ) ( 844 ) Loss on sale of subsidiary and subsidiaries held for sale ( 15 ) ( 7,086 ) Earnings before income taxes 8,106 1 Provision for income taxes ( 1,632 ) ( 1,222 ) Net earnings (loss) 6,474 ( 1,221 ) Earnings attributable to noncontrolling interests ( 182 ) ( 188 ) Net earnings (loss) attributable to UnitedHealth Group common shareholders $ 6,292 $ ( 1,409 ) Earnings (loss) per share attributable to UnitedHealth Group common shareholders: Basic $ 6.90 $ ( 1.53 ) Diluted $ 6.85 $ ( 1.53 ) Basic weighted-average number of common shares outstanding 912 922 Dilutive effect of common share equivalents 6 — Diluted weighted-average number of common shares outstanding 918 922 Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents 6 15 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) 2025 2024 Net earnings (loss) $ 6,474 $ ( 1,221 ) Other comprehensive income: Gross unrealized gains (losses) on investment securities during the period 521 ( 290 ) Income tax effect ( 119 ) 68 Total unrealized gains (losses), net of tax 402 ( 222 ) Gross reclassification adjustment for net realized gains included in net earnings ( 10 ) ( 32 ) Income tax effect 2 7 Total reclassification adjustment, net of tax ( 8 ) ( 25 ) Foreign currency translation gains (losses) 88 ( 293 ) Reclassification adjustment for translation losses included in net earnings (loss) — 4,128 Total foreign currency translation gains 88 3,835 Other comprehensive income 482 3,588 Comprehensive income 6,956 2,367 Comprehensive income attributable to noncontrolling interests ( 182 ) ( 188 ) Comprehensive income attributable to UnitedHealth Group common shareholders $ 6,774 $ 2,179 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 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, 2025 915 $ 9 $ — $ 96,036 $ ( 2,226 ) $ ( 1,161 ) $ 5,610 $ 98,268 Net earnings 6,292 148 6,440 Other comprehensive income 394 88 482 Issuances of common stock, and related tax effects 1 — 183 183 Share-based compensation 362 362 Common share repurchases ( 6 ) — ( 540 ) ( 2,482 ) ( 3,022 ) Cash dividends paid on common shares ($ 2.10 per share) ( 1,912 ) ( 1,912 ) Redeemable noncontrolling interests fair value and other adjustments ( 5 ) ( 5 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 194 194 Distribution to nonredeemable noncontrolling interests ( 179 ) ( 179 ) Balance at March 31, 2025 910 9 — 97,934 ( 1,832 ) ( 1,073 ) 5,773 100,811 Balance at January 1, 2024 924 $ 9 $ — $ 95,774 $ ( 1,971 ) $ ( 5,056 ) $ 5,665 $ 94,421 Net (loss) earnings ( 1,409 ) 149 ( 1,260 ) Other comprehensive (loss) income ( 247 ) 3,835 3,588 Issuances of common stock, and related tax effects 2 — 242 242 Share-based compensation 352 352 Common share repurchases ( 6 ) — ( 574 ) ( 2,518 ) ( 3,092 ) Cash dividends paid on common shares ($ 1.88 per share) ( 1,729 ) ( 1,729 ) Redeemable noncontrolling interests fair value and other adjustments ( 20 ) ( 20 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 19 19 Distribution to nonredeemable noncontrolling interests ( 151 ) ( 151 ) Balance at March 31, 2024 920 $ 9 $ — $ 90,118 $ ( 2,218 ) $ ( 1,221 ) $ 5,682 $ 92,370 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) 2025 2024 Operating activities Net earnings (loss) $ 6,474 $ ( 1,221 ) Noncash items: Depreciation and amortization 1,061 997 Deferred income taxes 64 ( 27 ) Share-based compensation 375 372 Loss on sale of subsidiary and subsidiaries held for sale 15 7,086 Other, net 97 179 Net change in other operating items, net of effects from acquisitions and dispositions: Accounts receivable ( 4,462 ) ( 6,162 ) Other assets ( 544 ) ( 1,927 ) Medical costs payable 2,993 2,069 Accounts payable and other liabilities ( 607 ) ( 231 ) Unearned revenues ( 10 ) 9 Cash flows from operating activities 5,456 1,144 Investing activities Purchases of investments ( 4,135 ) ( 4,798 ) Sales of investments 3,185 2,976 Maturities of investments 2,167 2,314 Cash paid for acquisitions and other transactions, net of cash assumed ( 702 ) ( 3,006 ) Purchases of property, equipment and capitalized software ( 898 ) ( 743 ) Loans to care providers - cyberattack — ( 2,164 ) Repayments of care provider loans - cyberattack 891 — Other, net ( 582 ) ( 919 ) Cash flows used for investing activities ( 74 ) ( 6,340 ) Financing activities Common share repurchases ( 3,000 ) ( 3,072 ) Cash dividends paid ( 1,912 ) ( 1,729 ) Proceeds from common stock issuances 360 486 Repayments of long-term debt — ( 750 ) Proceeds from short-term borrowings, net 3,911 6,189 Proceeds from issuance of long-term debt — 5,925 Customer funds administered 1,245 1,745 Other, net ( 505 ) ( 563 ) Cash flows from financing activities 99 8,231 Effect of exchange rate changes on cash and cash equivalents 15 ( 48 ) Increase in cash and cash equivalents, including cash within businesses held for sale 5,496 2,987 Less: net increase in cash within businesses held for sale ( 91 ) — Net increase in cash and cash equivalents 5,405 2,987 Cash and cash equivalents, beginning of period 25,312 25,427 Cash and cash equivalents, end of period $ 30,717 $ 28,414 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. The Company’s two distinct, yet complementary businesses — 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, 2024 as filed with the SEC (2024 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, 2025 and December 31, 2024, accounts receivable related to products and services were $ 11.7 billion and $ 9.9 billion, respectively. As of March 31, 2025, 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 is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, was $ 12.4 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, 2025 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,276 $ 1 $ ( 212 ) $ 4,065 State and municipal obligations 7,110 4 ( 367 ) 6,747 Corporate obligations 24,097 65 ( 924 ) 23,238 U.S. agency mortgage-backed securities 10,410 5 ( 812 ) 9,603 Non-U.S. agency mortgage-backed securities 2,939 3 ( 148 ) 2,794 Total debt securities - available-for-sale 48,832 78 ( 2,463 ) 46,447 Debt securities - held-to-maturity: U.S. government and agency obligations 447 1 ( 1 ) 447 State and municipal obligations 27 — ( 3 ) 24 Corporate obligations 18 — — 18 Total debt securities - held-to-maturity 492 1 ( 4 ) 489 Total debt securities $ 49,324 $ 79 $ ( 2,467 ) $ 46,936 December 31, 2024 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,600 $ 1 $ ( 274 ) $ 4,327 State and municipal obligations 7,357 2 ( 375 ) 6,984 Corporate obligations 24,391 56 ( 1,140 ) 23,307 U.S. agency mortgage-backed securities 10,577 1 ( 994 ) 9,584 Non-U.S. agency mortgage-backed securities 2,890 2 ( 175 ) 2,717 Total debt securities - available-for-sale 49,815 62 ( 2,958 ) 46,919 Debt securities - held-to-maturity: U.S. government and agency obligations 444 — ( 2 ) 442 State and municipal obligations 28 — ( 2 ) 26 Corporate obligations 40 — — 40 Total debt securities - held-to-maturity 512 — ( 4 ) 508 Total debt securities $ 50,327 $ 62 $ ( 2,962 ) $ 47,427 The Company held $ 5.1 billion and $ 4.9 billion of equity securities as of March 31, 2025 and December 31, 2024, respectively. The Company’s investments in equity securities primarily consist of venture investments and employee savings plan related investments. Additionally, the Company’s investments included $ 3.4 billion and $ 3.8 billion of equity method investments primarily in operating businesses in the health care sector as of March 31, 2025 and December 31, 2024, respectively. The allowance for credit losses on held-to-maturity securities at March 31, 2025 and December 31, 2024 was not material. 7 Table of Contents The amortized cost and fair value of debt securities as of March 31, 2025, 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 $ 3,693 $ 3,670 $ 341 $ 341 Due after one year through five years 14,251 13,885 120 121 Due after five years through ten years 12,248 11,536 14 13 Due after ten years 5,291 4,959 17 14 U.S. agency mortgage-backed securities 10,410 9,603 — — Non-U.S. agency mortgage-backed securities 2,939 2,794 — — Total debt securities $ 48,832 $ 46,447 $ 492 $ 489 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, 2025 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,540 $ ( 28 ) $ 1,944 $ ( 184 ) $ 3,484 $ ( 212 ) State and municipal obligations 2,111 ( 67 ) 4,150 ( 300 ) 6,261 ( 367 ) Corporate obligations 6,855 ( 146 ) 10,705 ( 778 ) 17,560 ( 924 ) U.S. agency mortgage-backed securities 4,032 ( 114 ) 4,660 ( 698 ) 8,692 ( 812 ) Non-U.S. agency mortgage-backed securities 557 ( 4 ) 1,745 ( 144 ) 2,302 ( 148 ) Total debt securities - available-for-sale $ 15,095 $ ( 359 ) $ 23,204 $ ( 2,104 ) $ 38,299 $ ( 2,463 ) December 31, 2024 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,475 $ ( 51 ) $ 2,152 $ ( 223 ) $ 3,627 $ ( 274 ) State and municipal obligations 2,593 ( 58 ) 4,085 ( 317 ) 6,678 ( 375 ) Corporate obligations 7,402 ( 213 ) 11,449 ( 927 ) 18,851 ( 1,140 ) U.S. agency mortgage-backed securities 4,791 ( 191 ) 4,674 ( 803 ) 9,465 ( 994 ) Non-U.S. agency mortgage-backed securities 416 ( 5 ) 1,863 ( 170 ) 2,279 ( 175 ) Total debt securities - available-for-sale $ 16,677 $ ( 518 ) $ 24,223 $ ( 2,440 ) $ 40,900 $ ( 2,958 ) The Company’s unrealized losses from debt securities as of March 31, 2025 were generated from approximately 32,000 positions out of a total of 42,000 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. 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, 2025, 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, 2025 and December 31, 2024 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 2024 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, 2025 Cash and cash equivalents $ 30,183 $ 534 $ — $ 30,717 Debt securities - available-for-sale: U.S. government and agency obligations 3,936 129 — 4,065 State and municipal obligations — 6,747 — 6,747 Corporate obligations 30 22,730 478 23,238 U.S. agency mortgage-backed securities — 9,603 — 9,603 Non-U.S. agency mortgage-backed securities — 2,794 — 2,794 Total debt securities - available-for-sale 3,966 42,003 478 46,447 Equity securities 1,708 213 215 2,136 Total assets at fair value $ 35,857 $ 42,750 $ 693 $ 79,300 Percentage of total assets at fair value 45 % 54 % 1 % 100 % December 31, 2024 Cash and cash equivalents $ 25,248 $ 64 $ — $ 25,312 Debt securities - available-for-sale: U.S. government and agency obligations 4,194 133 — 4,327 State and municipal obligations — 6,984 — 6,984 Corporate obligations 29 22,841 437 23,307 U.S. agency mortgage-backed securities — 9,584 — 9,584 Non-U.S. agency mortgage-backed securities — 2,717 — 2,717 Total debt securities - available-for-sale 4,223 42,259 437 46,919 Equity securities 1,859 24 65 1,948 Total assets at fair value $ 31,330 $ 42,347 $ 502 $ 74,179 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, 2025 or 2024. 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, 2025 Debt securities - held-to-maturity $ 464 $ 25 $ — $ 489 $ 492 Long-term debt and other financing obligations $ — $ 71,337 $ — $ 71,337 $ 76,036 December 31, 2024 Debt securities - held-to-maturity $ 482 $ 26 $ — $ 508 $ 512 Long-term debt and other financing obligations $ — $ 70,565 $ — $ 70,565 $ 75,604 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. The assets and liabilities within our South American operations held for sale as of March 31, 2025 were measured at the lower of carrying value or fair value less cost to sell. Fair value is measured based upon unobservable amounts, such as estimated selling price derived from Company-specific information and market conditions. There were no significant fair value adjustments for assets and liabilities recorded during the three months ended March 31, 2025 or 2024. 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) 2025 2024 Medical costs payable, beginning of period $ 34,224 $ 32,395 Acquisitions (dispositions), net — ( 687 ) Reported medical costs: Current year 73,731 66,045 Prior years ( 320 ) ( 310 ) Total reported medical costs 73,411 65,735 Medical payments: Payments for current year ( 43,827 ) ( 38,652 ) Payments for prior years ( 26,669 ) ( 24,759 ) Total medical payments ( 70,496 ) ( 63,411 ) Less: increase in medical costs payable included within businesses held for sale ( 3 ) — Medical costs payable, end of period $ 37,136 $ 34,032 For the three months ended March 31, 2025 and 2024, prior years’ medical cost reserve development included no individual factors that were significant. Medical costs payable included reserves for claims incurred by consumers but not yet reported to the Company of $ 25.9 billion and $ 23.7 billion at March 31, 2025 and December 31, 2024, respectively. 5. Short-Term Borrowings and Long-Term Debt As of March 31, 2025, the Company had $ 5.2 billion of commercial paper outstanding, with a weighted-average annual interest rate of 4.4 %. 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 2024 10-K. 10 Table of Contents 6. Commitments and Contingencies Pending Acquisitions As of March 31, 2025, the Company had entered into agreements to acquire companies in the health care sector, subject to regulatory approval and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, was approximately $ 4 billion. 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 for 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, the Defense Contract Audit Agency, the Food and Drug Administration and other governmental authorities. Similarly, the Company’s international businesses are also subject to investigations, audits and reviews by applicable foreign governments. The Company has also been responding to subpoenas, information requests and investigations from governmental entities. The Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial condition or results of operations will be materially adversely affected. 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. In March 2025, a Special Master appointed by the court issued a report recommending that the court enter summary judgment in the Company’s favor on all remaining claims. In April 2025, the DOJ filed a motion asking the court to reject the Special Master’s report. The Company cannot reasonably estimate the outcome which may result from this matter given its procedural status. 11 Table of Contents 7. Held for Sale The Company’s planned sales of its remaining South American operations are expected to close within the year, subject to regulatory and other customary closing conditions. Assets and liabilities held for sale have been included within prepaid expenses and other current assets and other current liabilities on the Condensed Consolidated Balance Sheet, respectively. The assets and liabilities of the held for sale disposal groups as of March 31, 2025, were as follows: (in millions) Businesses Held for Sale Assets Cash and cash equivalents $ 310 Accounts receivable and other current assets 637 Property, equipment and capitalized software 690 Goodwill and other intangible assets 440 Other long-term assets 287 Remeasurement of assets of businesses held for sale to fair value less cost to sell (1) ( 1,272 ) Total assets $ 1,092 Liabilities Medical costs payable $ 182 Accounts payable and other current liabilities 459 Other long-term liabilities 411 Total liabilities $ 1,052 (1) Includes the effect of $ 849 million of cumulative foreign currency translation losses and $ 50 million of noncontrolling interests. 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 2024 10-K. 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, 2025 Revenues - unaffiliated customers: Premiums $ 81,513 $ 5,021 $ — $ — $ — $ 5,021 $ — $ 86,534 Products — 65 44 12,927 — 13,036 — 13,036 Services 2,576 3,874 1,501 1,021 — 6,396 — 8,972 Total revenues - unaffiliated customers 84,089 8,960 1,545 13,948 — 24,453 — 108,542 Total revenues - affiliated customers — 15,914 3,062 21,137 ( 1,186 ) 38,927 ( 38,927 ) — Investment and other income 528 435 23 47 — 505 — 1,033 Total revenues $ 84,617 $ 25,309 $ 4,630 $ 35,132 $ ( 1,186 ) $ 63,885 $ ( 38,927 ) $ 109,575 Total operating costs (a) $ 79,391 $ 23,695 $ 3,669 $ 33,814 $ ( 1,186 ) $ 59,992 $ ( 38,927 ) $ 100,456 Earnings from operations $ 5,226 $ 1,614 $ 961 $ 1,318 $ — $ 3,893 $ — $ 9,119 Interest expense — — — — — — ( 998 ) ( 998 ) Loss on sale of subsidiary and subsidiaries held for sale ( 15 ) — — — — — — ( 15 ) Earnings before income taxes $ 5,211 $ 1,614 $ 961 $ 1,318 $ — $ 3,893 $ ( 998 ) $ 8,106 Total assets $ 131,902 $ 97,722 $ 34,470 $ 60,379 $ — $ 192,571 $ ( 14,683 ) $ 309,790 Purchases of property, equipment and capitalized software 196 279 338 85 — 702 — 898 Depreciation and Amortization 219 287 344 211 — 842 — 1,061 Three Months Ended March 31, 2024 Revenues - unaffiliated customers: Premiums $ 72,293 $ 5,695 $ — $ — $ — $ 5,695 $ — $ 77,988 Products — 59 41 11,809 — 11,909 — 11,909 Services 2,529 3,970 1,702 687 — 6,359 — 8,888 Total revenues - unaffiliated customers 74,822 9,724 1,743 12,496 — 23,963 — 98,785 Total revenues - affiliated customers — 16,617 2,731 18,281 ( 1,016 ) 36,613 ( 36,613 ) — Investment and other income 535 390 28 58 — 476 — 1,011 Total revenues $ 75,357 $ 26,731 $ 4,502 $ 30,835 $ ( 1,016 ) $ 61,052 $ ( 36,613 ) $ 99,796 Total operating costs (a) $ 70,962 $ 24,832 $ 4,012 $ 29,688 $ ( 1,016 ) $ 57,516 $ ( 36,613 ) $ 91,865 Earnings from operations $ 4,395 $ 1,899 $ 490 $ 1,147 $ — $ 3,536 $ — $ 7,931 Interest expense — — — — — — ( 844 ) ( 844 ) Loss on sale of subsidiary and subsidiaries held for sale ( 7,086 ) — — — — — — ( 7,086 ) Earnings before income taxes $ ( 2,691 ) $ 1,899 $ 490 $ 1,147 $ — $ 3,536 $ ( 844 ) $ 1 Total assets $ 112,840 $ 94,861 $ 34,220 $ 55,291 $ — $ 184,372 $ ( 13,002 ) $ 284,210 Purchases of property, equipment and capitalized software 183 238 245 77 — 560 — 743 Depreciation and Amortization 235 272 310 180 — 762 — 997 (a) Total operating costs include medical costs, operating costs, cost of products sold and depreciation and amortization, as applicable for each reportable segment. 13 Table of Contents