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[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
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41-1321939
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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UnitedHealth Group Center
9900 Bren Road East
Minnetonka, Minnesota
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55343
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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[X]
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Accelerated filer
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[ ]
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Non-accelerated filer
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[ ]
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Smaller reporting company
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[ ]
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Emerging growth company
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[ ]
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Page
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(in millions, except per share data)
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
16,269
|
|
|
$
|
10,430
|
|
Short-term investments
|
|
3,525
|
|
|
2,845
|
|
||
Accounts receivable, net
|
|
8,638
|
|
|
8,152
|
|
||
Other current receivables, net
|
|
6,826
|
|
|
7,499
|
|
||
Assets under management
|
|
3,082
|
|
|
3,105
|
|
||
Prepaid expenses and other current assets
|
|
2,581
|
|
|
1,848
|
|
||
Total current assets
|
|
40,921
|
|
|
33,879
|
|
||
Long-term investments
|
|
27,703
|
|
|
23,868
|
|
||
Property, equipment and capitalized software, net
|
|
6,562
|
|
|
5,901
|
|
||
Goodwill
|
|
53,402
|
|
|
47,584
|
|
||
Other intangible assets, net
|
|
8,457
|
|
|
8,541
|
|
||
Other assets
|
|
3,387
|
|
|
3,037
|
|
||
Total assets
|
|
$
|
140,432
|
|
|
$
|
122,810
|
|
Liabilities, redeemable noncontrolling interests and equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Medical costs payable
|
|
$
|
17,963
|
|
|
$
|
16,391
|
|
Accounts payable and accrued liabilities
|
|
15,878
|
|
|
13,361
|
|
||
Commercial paper and current maturities of long-term debt
|
|
4,539
|
|
|
7,193
|
|
||
Unearned revenues
|
|
6,635
|
|
|
1,968
|
|
||
Other current liabilities
|
|
13,073
|
|
|
10,339
|
|
||
Total current liabilities
|
|
58,088
|
|
|
49,252
|
|
||
Long-term debt, less current maturities
|
|
24,723
|
|
|
25,777
|
|
||
Future policy benefits
|
|
2,535
|
|
|
2,524
|
|
||
Deferred income taxes
|
|
2,697
|
|
|
2,761
|
|
||
Other liabilities
|
|
2,909
|
|
|
2,307
|
|
||
Total liabilities
|
|
90,952
|
|
|
82,621
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
|
2,170
|
|
|
2,012
|
|
||
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; 969 and 952 issued and outstanding
|
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
|
1,801
|
|
|
—
|
|
||
Retained earnings
|
|
45,840
|
|
|
40,945
|
|
||
Accumulated other comprehensive loss
|
|
(2,353
|
)
|
|
(2,681
|
)
|
||
Nonredeemable noncontrolling interest
|
|
2,012
|
|
|
(97
|
)
|
||
Total equity
|
|
47,310
|
|
|
38,177
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
|
$
|
140,432
|
|
|
$
|
122,810
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in millions, except per share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
39,552
|
|
|
$
|
36,142
|
|
|
$
|
118,075
|
|
|
$
|
107,366
|
|
Products
|
|
6,665
|
|
|
6,696
|
|
|
19,209
|
|
|
19,699
|
|
||||
Services
|
|
3,858
|
|
|
3,264
|
|
|
11,089
|
|
|
9,673
|
|
||||
Investment and other income
|
|
247
|
|
|
191
|
|
|
725
|
|
|
567
|
|
||||
Total revenues
|
|
50,322
|
|
|
46,293
|
|
|
149,098
|
|
|
137,305
|
|
||||
Operating costs:
|
|
|
|
|
|
|
|
|
||||||||
Medical costs
|
|
32,201
|
|
|
29,040
|
|
|
96,829
|
|
|
87,342
|
|
||||
Operating costs
|
|
7,387
|
|
|
7,033
|
|
|
21,737
|
|
|
20,584
|
|
||||
Cost of products sold
|
|
6,068
|
|
|
6,125
|
|
|
17,633
|
|
|
18,108
|
|
||||
Depreciation and amortization
|
|
578
|
|
|
515
|
|
|
1,667
|
|
|
1,528
|
|
||||
Total operating costs
|
|
46,234
|
|
|
42,713
|
|
|
137,866
|
|
|
127,562
|
|
||||
Earnings from operations
|
|
4,088
|
|
|
3,580
|
|
|
11,232
|
|
|
9,743
|
|
||||
Interest expense
|
|
(294
|
)
|
|
(269
|
)
|
|
(878
|
)
|
|
(799
|
)
|
||||
Earnings before income taxes
|
|
3,794
|
|
|
3,311
|
|
|
10,354
|
|
|
8,944
|
|
||||
Provision for income taxes
|
|
(1,233
|
)
|
|
(1,333
|
)
|
|
(3,252
|
)
|
|
(3,579
|
)
|
||||
Net earnings
|
|
2,561
|
|
|
1,978
|
|
|
7,102
|
|
|
5,365
|
|
||||
Earnings attributable to noncontrolling interests
|
|
(76
|
)
|
|
(10
|
)
|
|
(161
|
)
|
|
(32
|
)
|
||||
Net earnings attributable to UnitedHealth Group common shareholders
|
|
$
|
2,485
|
|
|
$
|
1,968
|
|
|
$
|
6,941
|
|
|
$
|
5,333
|
|
Earnings per share attributable to UnitedHealth Group common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
2.57
|
|
|
$
|
2.07
|
|
|
$
|
7.22
|
|
|
$
|
5.60
|
|
Diluted
|
|
$
|
2.51
|
|
|
$
|
2.03
|
|
|
$
|
7.06
|
|
|
$
|
5.51
|
|
Basic weighted-average number of common shares outstanding
|
|
968
|
|
|
952
|
|
|
962
|
|
|
952
|
|
||||
Dilutive effect of common share equivalents
|
|
21
|
|
|
17
|
|
|
21
|
|
|
16
|
|
||||
Diluted weighted-average number of common shares outstanding
|
|
989
|
|
|
969
|
|
|
983
|
|
|
968
|
|
||||
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents
|
|
1
|
|
|
1
|
|
|
6
|
|
|
3
|
|
||||
Cash dividends declared per common share
|
|
$
|
0.750
|
|
|
$
|
0.625
|
|
|
$
|
2.125
|
|
|
$
|
1.750
|
|
|
||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net earnings
|
|
$
|
2,561
|
|
|
$
|
1,978
|
|
|
$
|
7,102
|
|
|
$
|
5,365
|
|
Other comprehensive income (loss) :
|
|
|
|
|
|
|
|
|
||||||||
Gross unrealized gains (losses) on investment securities during the period
|
|
44
|
|
|
(21
|
)
|
|
313
|
|
|
473
|
|
||||
Income tax effect
|
|
(17
|
)
|
|
7
|
|
|
(111
|
)
|
|
(173
|
)
|
||||
Total unrealized gains (losses), net of tax
|
|
27
|
|
|
(14
|
)
|
|
202
|
|
|
300
|
|
||||
Gross reclassification adjustment for net realized gains included in net earnings
|
|
(10
|
)
|
|
(26
|
)
|
|
(51
|
)
|
|
(97
|
)
|
||||
Income tax effect
|
|
4
|
|
|
9
|
|
|
19
|
|
|
35
|
|
||||
Total reclassification adjustment, net of tax
|
|
(6
|
)
|
|
(17
|
)
|
|
(32
|
)
|
|
(62
|
)
|
||||
Total foreign currency translation gains (losses)
|
|
217
|
|
|
(69
|
)
|
|
158
|
|
|
793
|
|
||||
Other comprehensive income (loss)
|
|
238
|
|
|
(100
|
)
|
|
328
|
|
|
1,031
|
|
||||
Comprehensive income
|
|
2,799
|
|
|
1,878
|
|
|
7,430
|
|
|
6,396
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
|
(76
|
)
|
|
(10
|
)
|
|
(161
|
)
|
|
(32
|
)
|
||||
Comprehensive income attributable to UnitedHealth Group common shareholders
|
|
$
|
2,723
|
|
|
$
|
1,868
|
|
|
$
|
7,269
|
|
|
$
|
6,364
|
|
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive (Loss)
Income
|
|
Nonredeemable Noncontrolling Interest
|
|
Total
Equity
|
|||||||||||||||||||
(in millions)
|
|
Shares
|
|
Amount
|
|
|
|
Net Unrealized (Losses) Gains on Investments
|
|
Foreign Currency Translation (Losses) Gains
|
|
|
|||||||||||||||||||
Balance at January 1, 2017
|
|
952
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
40,945
|
|
|
$
|
(97
|
)
|
|
$
|
(2,584
|
)
|
|
$
|
(97
|
)
|
|
$
|
38,177
|
|
Net earnings
|
|
|
|
|
|
|
|
6,941
|
|
|
|
|
|
|
120
|
|
|
7,061
|
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
170
|
|
|
158
|
|
|
|
|
328
|
|
||||||||||||
Issuances of common stock,
and related tax effects |
|
24
|
|
|
—
|
|
|
2,156
|
|
|
|
|
|
|
|
|
|
|
2,156
|
|
|||||||||||
Share-based compensation
|
|
|
|
|
|
447
|
|
|
|
|
|
|
|
|
|
|
447
|
|
|||||||||||||
Common share repurchases
|
|
(7
|
)
|
|
—
|
|
|
(1,173
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,173
|
)
|
||||||||||
Cash dividends paid on common shares
|
|
|
|
|
|
|
|
(2,046
|
)
|
|
|
|
|
|
|
|
(2,046
|
)
|
|||||||||||||
Redeemable noncontrolling interests fair value and other adjustments
|
|
|
|
|
|
371
|
|
|
|
|
|
|
|
|
|
|
371
|
|
|||||||||||||
Acquisition of nonredeemable noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,111
|
|
|
2,111
|
|
|||||||||||||
Distribution to nonredeemable noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
(122
|
)
|
|||||||||||||
Balance at September 30, 2017
|
|
969
|
|
|
$
|
10
|
|
|
$
|
1,801
|
|
|
$
|
45,840
|
|
|
$
|
73
|
|
|
$
|
(2,426
|
)
|
|
$
|
2,012
|
|
|
$
|
47,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2016
|
|
953
|
|
|
$
|
10
|
|
|
$
|
29
|
|
|
$
|
37,125
|
|
|
$
|
56
|
|
|
$
|
(3,390
|
)
|
|
$
|
(105
|
)
|
|
$
|
33,725
|
|
Adjustment to adopt ASU 2016-09
|
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
28
|
|
|||||||||||||
Net earnings
|
|
|
|
|
|
|
|
5,333
|
|
|
|
|
|
|
31
|
|
|
5,364
|
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
238
|
|
|
793
|
|
|
|
|
1,031
|
|
||||||||||||
Issuances of common stock,
and related tax effects
|
|
8
|
|
|
—
|
|
|
187
|
|
|
|
|
|
|
|
|
|
|
187
|
|
|||||||||||
Share-based compensation
|
|
|
|
|
|
350
|
|
|
|
|
|
|
|
|
|
|
350
|
|
|||||||||||||
Common share repurchases
|
|
(9
|
)
|
|
—
|
|
|
(242
|
)
|
|
(875
|
)
|
|
|
|
|
|
|
|
(1,117
|
)
|
||||||||||
Cash dividends paid on common shares
|
|
|
|
|
|
|
|
(1,666
|
)
|
|
|
|
|
|
|
|
(1,666
|
)
|
|||||||||||||
Acquisition of redeemable noncontrolling interest shares
|
|
|
|
|
|
(143
|
)
|
|
|
|
|
|
|
|
|
|
(143
|
)
|
|||||||||||||
Redeemable noncontrolling interests fair value and other adjustments
|
|
|
|
|
|
(181
|
)
|
|
|
|
|
|
|
|
|
|
(181
|
)
|
|||||||||||||
Distribution to nonredeemable noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24
|
)
|
|
(24
|
)
|
|||||||||||||
Balance at September 30, 2016
|
|
952
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
39,945
|
|
|
$
|
294
|
|
|
$
|
(2,597
|
)
|
|
$
|
(98
|
)
|
|
$
|
37,554
|
|
|
|
Nine Months Ended September 30,
|
||||||
(in millions)
|
|
2017
|
|
2016
|
||||
Operating activities
|
|
|
|
|
||||
Net earnings
|
|
$
|
7,102
|
|
|
$
|
5,365
|
|
Noncash items:
|
|
|
|
|
||||
Depreciation and amortization
|
|
1,667
|
|
|
1,528
|
|
||
Deferred income taxes
|
|
(459
|
)
|
|
(405
|
)
|
||
Share-based compensation
|
|
456
|
|
|
369
|
|
||
Other, net
|
|
168
|
|
|
(68
|
)
|
||
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:
|
|
|
|
|
||||
Accounts receivable
|
|
(244
|
)
|
|
(580
|
)
|
||
Other assets
|
|
(763
|
)
|
|
(1,835
|
)
|
||
Medical costs payable
|
|
1,305
|
|
|
1,984
|
|
||
Accounts payable and other liabilities
|
|
2,283
|
|
|
1,280
|
|
||
Unearned revenues
|
|
4,658
|
|
|
3,566
|
|
||
Cash flows from operating activities
|
|
16,173
|
|
|
11,204
|
|
||
Investing activities
|
|
|
|
|
||||
Purchases of investments
|
|
(10,626
|
)
|
|
(12,231
|
)
|
||
Sales of investments
|
|
2,809
|
|
|
4,422
|
|
||
Maturities of investments
|
|
4,251
|
|
|
3,040
|
|
||
Cash paid for acquisitions, net of cash assumed
|
|
(908
|
)
|
|
(2,727
|
)
|
||
Purchases of property, equipment and capitalized software
|
|
(1,391
|
)
|
|
(1,220
|
)
|
||
Other, net
|
|
(30
|
)
|
|
(25
|
)
|
||
Cash flows used for investing activities
|
|
(5,895
|
)
|
|
(8,741
|
)
|
||
Financing activities
|
|
|
|
|
||||
Common share repurchases
|
|
(1,173
|
)
|
|
(1,117
|
)
|
||
Cash dividends paid
|
|
(2,046
|
)
|
|
(1,666
|
)
|
||
Proceeds from common stock issuances
|
|
604
|
|
|
387
|
|
||
Proceeds from issuance of long-term debt
|
|
1,342
|
|
|
2,485
|
|
||
Repayments of long-term debt
|
|
(2,867
|
)
|
|
(2,101
|
)
|
||
(Repayments of) proceeds from commercial paper, net
|
|
(3,352
|
)
|
|
693
|
|
||
Customer funds administered
|
|
3,659
|
|
|
1,249
|
|
||
Other, net
|
|
(624
|
)
|
|
(590
|
)
|
||
Cash flows used for financing activities
|
|
(4,457
|
)
|
|
(660
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
18
|
|
|
70
|
|
||
Increase in cash and cash equivalents
|
|
5,839
|
|
|
1,873
|
|
||
Cash and cash equivalents, beginning of period
|
|
10,430
|
|
|
10,923
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
16,269
|
|
|
$
|
12,796
|
|
|
|
|
|
|
||||
Supplemental Schedule of Noncash Investing Activities
|
|
|
|
|
||||
Common stock issued for acquisition
|
|
$
|
2,164
|
|
|
$
|
—
|
|
(in millions)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
$
|
2,708
|
|
|
$
|
3
|
|
|
$
|
(24
|
)
|
|
$
|
2,687
|
|
State and municipal obligations
|
|
6,997
|
|
|
117
|
|
|
(20
|
)
|
|
7,094
|
|
||||
Corporate obligations
|
|
13,092
|
|
|
88
|
|
|
(26
|
)
|
|
13,154
|
|
||||
U.S. agency mortgage-backed securities
|
|
3,946
|
|
|
13
|
|
|
(28
|
)
|
|
3,931
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
1,018
|
|
|
5
|
|
|
(4
|
)
|
|
1,019
|
|
||||
Total debt securities - available-for-sale
|
|
27,761
|
|
|
226
|
|
|
(102
|
)
|
|
27,885
|
|
||||
Equity securities
|
|
1,949
|
|
|
30
|
|
|
(38
|
)
|
|
1,941
|
|
||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
259
|
|
|
—
|
|
|
—
|
|
|
259
|
|
||||
State and municipal obligations
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Corporate obligations
|
|
285
|
|
|
—
|
|
|
—
|
|
|
285
|
|
||||
Total debt securities - held-to-maturity
|
|
548
|
|
|
—
|
|
|
—
|
|
|
548
|
|
||||
Total investments
|
|
$
|
30,258
|
|
|
$
|
256
|
|
|
$
|
(140
|
)
|
|
$
|
30,374
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
$
|
2,294
|
|
|
$
|
1
|
|
|
$
|
(31
|
)
|
|
$
|
2,264
|
|
State and municipal obligations
|
|
7,120
|
|
|
40
|
|
|
(101
|
)
|
|
7,059
|
|
||||
Corporate obligations
|
|
10,944
|
|
|
41
|
|
|
(58
|
)
|
|
10,927
|
|
||||
U.S. agency mortgage-backed securities
|
|
2,963
|
|
|
7
|
|
|
(43
|
)
|
|
2,927
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
1,009
|
|
|
3
|
|
|
(10
|
)
|
|
1,002
|
|
||||
Total debt securities - available-for-sale
|
|
24,330
|
|
|
92
|
|
|
(243
|
)
|
|
24,179
|
|
||||
Equity securities
|
|
2,036
|
|
|
52
|
|
|
(47
|
)
|
|
2,041
|
|
||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
250
|
|
|
1
|
|
|
—
|
|
|
251
|
|
||||
State and municipal obligations
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Corporate obligations
|
|
238
|
|
|
—
|
|
|
—
|
|
|
238
|
|
||||
Total debt securities - held-to-maturity
|
|
493
|
|
|
1
|
|
|
—
|
|
|
494
|
|
||||
Total investments
|
|
$
|
26,859
|
|
|
$
|
145
|
|
|
$
|
(290
|
)
|
|
$
|
26,714
|
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
(in millions)
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost |
|
Fair
Value |
||||||||
Due in one year or less
|
|
$
|
3,650
|
|
|
$
|
3,651
|
|
|
$
|
165
|
|
|
$
|
165
|
|
Due after one year through five years
|
|
10,607
|
|
|
10,645
|
|
|
125
|
|
|
125
|
|
||||
Due after five years through ten years
|
|
6,476
|
|
|
6,540
|
|
|
113
|
|
|
113
|
|
||||
Due after ten years
|
|
2,064
|
|
|
2,099
|
|
|
145
|
|
|
145
|
|
||||
U.S. agency mortgage-backed securities
|
|
3,946
|
|
|
3,931
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
1,018
|
|
|
1,019
|
|
|
—
|
|
|
—
|
|
||||
Total debt securities
|
|
$
|
27,761
|
|
|
$
|
27,885
|
|
|
$
|
548
|
|
|
$
|
548
|
|
|
|
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 |
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency obligations
|
|
$
|
1,635
|
|
|
$
|
(11
|
)
|
|
$
|
532
|
|
|
$
|
(13
|
)
|
|
$
|
2,167
|
|
|
$
|
(24
|
)
|
State and municipal obligations
|
|
1,910
|
|
|
(15
|
)
|
|
429
|
|
|
(5
|
)
|
|
2,339
|
|
|
(20
|
)
|
||||||
Corporate obligations
|
|
3,958
|
|
|
(17
|
)
|
|
496
|
|
|
(9
|
)
|
|
4,454
|
|
|
(26
|
)
|
||||||
U.S. agency mortgage-backed securities
|
|
2,233
|
|
|
(24
|
)
|
|
146
|
|
|
(4
|
)
|
|
2,379
|
|
|
(28
|
)
|
||||||
Non-U.S. agency mortgage-backed securities
|
|
351
|
|
|
(3
|
)
|
|
49
|
|
|
(1
|
)
|
|
400
|
|
|
(4
|
)
|
||||||
Total debt securities - available-for-sale
|
|
$
|
10,087
|
|
|
$
|
(70
|
)
|
|
$
|
1,652
|
|
|
$
|
(32
|
)
|
|
$
|
11,739
|
|
|
$
|
(102
|
)
|
Equity securities
|
|
$
|
59
|
|
|
$
|
(4
|
)
|
|
$
|
97
|
|
|
$
|
(34
|
)
|
|
$
|
156
|
|
|
$
|
(38
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency obligations
|
|
$
|
1,794
|
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,794
|
|
|
$
|
(31
|
)
|
State and municipal obligations
|
|
4,376
|
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
4,376
|
|
|
(101
|
)
|
||||||
Corporate obligations
|
|
5,128
|
|
|
(56
|
)
|
|
137
|
|
|
(2
|
)
|
|
5,265
|
|
|
(58
|
)
|
||||||
U.S. agency mortgage-backed securities
|
|
2,247
|
|
|
(40
|
)
|
|
79
|
|
|
(3
|
)
|
|
2,326
|
|
|
(43
|
)
|
||||||
Non-U.S. agency mortgage-backed securities
|
|
544
|
|
|
(7
|
)
|
|
97
|
|
|
(3
|
)
|
|
641
|
|
|
(10
|
)
|
||||||
Total debt securities - available-for-sale
|
|
$
|
14,089
|
|
|
$
|
(235
|
)
|
|
$
|
313
|
|
|
$
|
(8
|
)
|
|
$
|
14,402
|
|
|
$
|
(243
|
)
|
Equity securities
|
|
$
|
93
|
|
|
$
|
(5
|
)
|
|
$
|
91
|
|
|
$
|
(42
|
)
|
|
$
|
184
|
|
|
$
|
(47
|
)
|
(in millions)
|
|
Quoted Prices
in Active
Markets
(Level 1)
|
|
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
Fair and Carrying
Value
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
13,462
|
|
|
$
|
2,807
|
|
|
$
|
—
|
|
|
$
|
16,269
|
|
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
2,405
|
|
|
282
|
|
|
—
|
|
|
2,687
|
|
||||
State and municipal obligations
|
|
—
|
|
|
7,094
|
|
|
—
|
|
|
7,094
|
|
||||
Corporate obligations
|
|
73
|
|
|
12,947
|
|
|
134
|
|
|
13,154
|
|
||||
U.S. agency mortgage-backed securities
|
|
—
|
|
|
3,931
|
|
|
—
|
|
|
3,931
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
—
|
|
|
1,019
|
|
|
—
|
|
|
1,019
|
|
||||
Total debt securities - available-for-sale
|
|
2,478
|
|
|
25,273
|
|
|
134
|
|
|
27,885
|
|
||||
Equity securities
|
|
1,804
|
|
|
14
|
|
|
123
|
|
|
1,941
|
|
||||
Assets under management
|
|
763
|
|
|
2,319
|
|
|
—
|
|
|
3,082
|
|
||||
Interest rate swap assets
|
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
||||
Total assets at fair value
|
|
$
|
18,507
|
|
|
$
|
30,463
|
|
|
$
|
257
|
|
|
$
|
49,227
|
|
Percentage of total assets at fair value
|
|
37
|
%
|
|
62
|
%
|
|
1
|
%
|
|
100
|
%
|
||||
Interest rate swap liabilities
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
10,386
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
10,430
|
|
Debt securities - available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agency obligations
|
|
2,017
|
|
|
247
|
|
|
—
|
|
|
2,264
|
|
||||
State and municipal obligations
|
|
—
|
|
|
7,059
|
|
|
—
|
|
|
7,059
|
|
||||
Corporate obligations
|
|
21
|
|
|
10,804
|
|
|
102
|
|
|
10,927
|
|
||||
U.S. agency mortgage-backed securities
|
|
—
|
|
|
2,927
|
|
|
—
|
|
|
2,927
|
|
||||
Non-U.S. agency mortgage-backed securities
|
|
—
|
|
|
1,002
|
|
|
—
|
|
|
1,002
|
|
||||
Total debt securities - available-for-sale
|
|
2,038
|
|
|
22,039
|
|
|
102
|
|
|
24,179
|
|
||||
Equity securities
|
|
1,591
|
|
|
13
|
|
|
437
|
|
|
2,041
|
|
||||
Assets under management
|
|
1,064
|
|
|
2,041
|
|
|
—
|
|
|
3,105
|
|
||||
Interest rate swap assets
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
||||
Total assets at fair value
|
|
$
|
15,079
|
|
|
$
|
24,192
|
|
|
$
|
539
|
|
|
$
|
39,810
|
|
Percentage of total assets at fair value
|
|
38
|
%
|
|
61
|
%
|
|
1
|
%
|
|
100
|
%
|
||||
Interest rate swap liabilities
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
14
|
|
(in millions)
|
|
Quoted Prices
in Active
Markets
(Level 1)
|
|
Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
Fair
Value
|
|
Total Carrying Value
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency obligations
|
|
$
|
256
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
259
|
|
|
$
|
259
|
|
State and municipal obligations
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|||||
Corporate obligations
|
|
17
|
|
|
1
|
|
|
267
|
|
|
285
|
|
|
285
|
|
|||||
Total debt securities - held-to-maturity
|
|
$
|
273
|
|
|
$
|
4
|
|
|
$
|
271
|
|
|
$
|
548
|
|
|
$
|
548
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
475
|
|
Long-term debt and other financing obligations
|
|
$
|
—
|
|
|
$
|
31,686
|
|
|
$
|
—
|
|
|
$
|
31,686
|
|
|
$
|
28,959
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt securities - held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency obligations
|
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
251
|
|
|
$
|
250
|
|
State and municipal obligations
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|||||
Corporate obligations
|
|
20
|
|
|
8
|
|
|
210
|
|
|
238
|
|
|
238
|
|
|||||
Total debt securities - held-to-maturity
|
|
$
|
271
|
|
|
$
|
8
|
|
|
$
|
215
|
|
|
$
|
494
|
|
|
$
|
493
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
476
|
|
|
$
|
—
|
|
|
$
|
476
|
|
|
$
|
471
|
|
Long-term debt and other financing obligations
|
|
$
|
—
|
|
|
$
|
31,295
|
|
|
$
|
—
|
|
|
$
|
31,295
|
|
|
$
|
29,337
|
|
(in millions)
|
|
2017
|
|
2016
|
||||
Medical costs payable, beginning of period
|
|
$
|
16,391
|
|
|
$
|
14,330
|
|
Acquisitions
|
|
76
|
|
|
—
|
|
||
Reported medical costs:
|
|
|
|
|
||||
Current year
|
|
97,519
|
|
|
87,532
|
|
||
Prior years
|
|
(690
|
)
|
|
(190
|
)
|
||
Total reported medical costs
|
|
96,829
|
|
|
87,342
|
|
||
Medical payments:
|
|
|
|
|
||||
Payments for current year
|
|
(81,237
|
)
|
|
(72,092
|
)
|
||
Payments for prior years
|
|
(14,096
|
)
|
|
(13,080
|
)
|
||
Total medical payments
|
|
(95,333
|
)
|
|
(85,172
|
)
|
||
Medical costs payable, end of period
|
|
$
|
17,963
|
|
|
$
|
16,500
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(in millions, except percentages)
|
|
Par
Value |
|
Carrying
Value
|
|
Fair
Value
|
|
Par
Value
|
|
Carrying
Value |
|
Fair
Value
|
||||||||||||
Commercial paper
|
|
$
|
304
|
|
|
$
|
303
|
|
|
$
|
303
|
|
|
$
|
3,633
|
|
|
$
|
3,633
|
|
|
$
|
3,633
|
|
Floating rate notes due January 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
750
|
|
|
750
|
|
|
750
|
|
||||||
6.000% notes due June 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
441
|
|
|
446
|
|
|
450
|
|
||||||
1.450% notes due July 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
750
|
|
|
750
|
|
|
751
|
|
||||||
1.400% notes due October 2017
|
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
624
|
|
|
626
|
|
||||||
6.000% notes due November 2017
|
|
156
|
|
|
157
|
|
|
157
|
|
|
156
|
|
|
159
|
|
|
163
|
|
||||||
1.400% notes due December 2017
|
|
750
|
|
|
750
|
|
|
750
|
|
|
750
|
|
|
751
|
|
|
750
|
|
||||||
6.000% notes due February 2018
|
|
1,100
|
|
|
1,102
|
|
|
1,118
|
|
|
1,100
|
|
|
1,107
|
|
|
1,153
|
|
||||||
1.900% notes due July 2018
|
|
1,500
|
|
|
1,498
|
|
|
1,504
|
|
|
1,500
|
|
|
1,496
|
|
|
1,507
|
|
||||||
1.700% notes due February 2019
|
|
750
|
|
|
749
|
|
|
750
|
|
|
750
|
|
|
748
|
|
|
748
|
|
||||||
1.625% notes due March 2019
|
|
500
|
|
|
501
|
|
|
499
|
|
|
500
|
|
|
501
|
|
|
498
|
|
||||||
2.300% notes due December 2019
|
|
500
|
|
|
497
|
|
|
504
|
|
|
500
|
|
|
498
|
|
|
504
|
|
||||||
2.700% notes due July 2020
|
|
1,500
|
|
|
1,496
|
|
|
1,530
|
|
|
1,500
|
|
|
1,495
|
|
|
1,523
|
|
||||||
3.875% notes due October 2020
|
|
450
|
|
|
449
|
|
|
473
|
|
|
450
|
|
|
450
|
|
|
474
|
|
||||||
4.700% notes due February 2021
|
|
400
|
|
|
407
|
|
|
431
|
|
|
400
|
|
|
409
|
|
|
433
|
|
||||||
2.125% notes due March 2021
|
|
750
|
|
|
746
|
|
|
750
|
|
|
750
|
|
|
745
|
|
|
741
|
|
||||||
3.375% notes due November 2021
|
|
500
|
|
|
497
|
|
|
520
|
|
|
500
|
|
|
497
|
|
|
519
|
|
||||||
2.875% notes due December 2021
|
|
750
|
|
|
748
|
|
|
769
|
|
|
750
|
|
|
748
|
|
|
760
|
|
||||||
2.875% notes due March 2022
|
|
1,100
|
|
|
1,063
|
|
|
1,125
|
|
|
1,100
|
|
|
1,057
|
|
|
1,114
|
|
||||||
3.350% notes due July 2022
|
|
1,000
|
|
|
996
|
|
|
1,044
|
|
|
1,000
|
|
|
995
|
|
|
1,030
|
|
||||||
0.000% notes due November 2022
|
|
15
|
|
|
11
|
|
|
12
|
|
|
15
|
|
|
11
|
|
|
12
|
|
||||||
2.750% notes due February 2023
|
|
625
|
|
|
612
|
|
|
632
|
|
|
625
|
|
|
609
|
|
|
622
|
|
||||||
2.875% notes due March 2023
|
|
750
|
|
|
771
|
|
|
765
|
|
|
750
|
|
|
771
|
|
|
753
|
|
||||||
3.750% notes due July 2025
|
|
2,000
|
|
|
1,987
|
|
|
2,122
|
|
|
2,000
|
|
|
1,986
|
|
|
2,070
|
|
||||||
3.100% notes due March 2026
|
|
1,000
|
|
|
995
|
|
|
1,012
|
|
|
1,000
|
|
|
994
|
|
|
986
|
|
||||||
3.450% notes due January 2027
|
|
750
|
|
|
745
|
|
|
776
|
|
|
750
|
|
|
745
|
|
|
762
|
|
||||||
3.375% notes due April 2027
|
|
625
|
|
|
618
|
|
|
643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
4.625% notes due July 2035
|
|
1,000
|
|
|
991
|
|
|
1,146
|
|
|
1,000
|
|
|
991
|
|
|
1,090
|
|
||||||
5.800% notes due March 2036
|
|
850
|
|
|
837
|
|
|
1,071
|
|
|
850
|
|
|
837
|
|
|
1,034
|
|
||||||
6.500% notes due June 2037
|
|
500
|
|
|
491
|
|
|
683
|
|
|
500
|
|
|
491
|
|
|
643
|
|
||||||
6.625% notes due November 2037
|
|
650
|
|
|
641
|
|
|
903
|
|
|
650
|
|
|
640
|
|
|
850
|
|
||||||
6.875% notes due February 2038
|
|
1,100
|
|
|
1,075
|
|
|
1,561
|
|
|
1,100
|
|
|
1,075
|
|
|
1,497
|
|
||||||
5.700% notes due October 2040
|
|
300
|
|
|
296
|
|
|
383
|
|
|
300
|
|
|
296
|
|
|
366
|
|
||||||
5.950% notes due February 2041
|
|
350
|
|
|
345
|
|
|
460
|
|
|
350
|
|
|
345
|
|
|
437
|
|
||||||
4.625% notes due November 2041
|
|
600
|
|
|
588
|
|
|
673
|
|
|
600
|
|
|
588
|
|
|
634
|
|
||||||
4.375% notes due March 2042
|
|
502
|
|
|
483
|
|
|
543
|
|
|
502
|
|
|
483
|
|
|
509
|
|
||||||
3.950% notes due October 2042
|
|
625
|
|
|
607
|
|
|
641
|
|
|
625
|
|
|
606
|
|
|
609
|
|
||||||
4.250% notes due March 2043
|
|
750
|
|
|
734
|
|
|
801
|
|
|
750
|
|
|
734
|
|
|
765
|
|
||||||
4.750% notes due July 2045
|
|
2,000
|
|
|
1,972
|
|
|
2,310
|
|
|
2,000
|
|
|
1,972
|
|
|
2,203
|
|
||||||
4.200% notes due January 2047
|
|
750
|
|
|
738
|
|
|
799
|
|
|
750
|
|
|
737
|
|
|
759
|
|
||||||
4.250% notes due April 2047
|
|
725
|
|
|
717
|
|
|
777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial paper and long-term debt
|
|
$
|
29,102
|
|
|
$
|
28,838
|
|
|
$
|
31,565
|
|
|
$
|
33,022
|
|
|
$
|
32,770
|
|
|
$
|
34,728
|
|
(in millions, except percentages)
|
|
Par
Value |
||
Floating rate notes due October 2020
|
|
$
|
300
|
|
1.950% notes due October 2020
|
|
900
|
|
|
2.375% notes due October 2022
|
|
900
|
|
|
2.950% notes due October 2027
|
|
950
|
|
|
3.750% notes due October 2047
|
|
950
|
|
Payment Date
|
|
Amount per Share
|
|
Total Amount Paid
|
||||
|
|
|
|
(in millions)
|
||||
March 10, 2017
|
|
$
|
0.625
|
|
|
$
|
596
|
|
June 27, 2017
|
|
0.750
|
|
|
724
|
|
||
September 19, 2017
|
|
0.750
|
|
|
726
|
|
|
|
|
|
Optum
|
|
|
|
|
||||||||||||||||||||||||
(in millions)
|
|
UnitedHealthcare
|
|
OptumHealth
|
|
OptumInsight
|
|
OptumRx
|
|
Optum Eliminations
|
|
Optum
|
|
Corporate and
Eliminations
|
|
Consolidated
|
||||||||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
38,576
|
|
|
$
|
976
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
976
|
|
|
$
|
—
|
|
|
$
|
39,552
|
|
Products
|
|
—
|
|
|
10
|
|
|
29
|
|
|
6,626
|
|
|
—
|
|
|
6,665
|
|
|
—
|
|
|
6,665
|
|
||||||||
Services
|
|
2,005
|
|
|
1,040
|
|
|
677
|
|
|
136
|
|
|
—
|
|
|
1,853
|
|
|
—
|
|
|
3,858
|
|
||||||||
Total revenues - unaffiliated customers
|
|
40,581
|
|
|
2,026
|
|
|
706
|
|
|
6,762
|
|
|
—
|
|
|
9,494
|
|
|
—
|
|
|
50,075
|
|
||||||||
Total revenues - affiliated customers
|
|
—
|
|
|
3,138
|
|
|
1,297
|
|
|
9,186
|
|
|
(324
|
)
|
|
13,297
|
|
|
(13,297
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
153
|
|
|
88
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
247
|
|
||||||||
Total revenues
|
|
$
|
40,734
|
|
|
$
|
5,252
|
|
|
$
|
2,004
|
|
|
$
|
15,953
|
|
|
$
|
(324
|
)
|
|
$
|
22,885
|
|
|
$
|
(13,297
|
)
|
|
$
|
50,322
|
|
Earnings from operations
|
|
$
|
2,391
|
|
|
$
|
513
|
|
|
$
|
414
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
1,697
|
|
|
$
|
—
|
|
|
$
|
4,088
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(294
|
)
|
|
(294
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
2,391
|
|
|
$
|
513
|
|
|
$
|
414
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
1,697
|
|
|
$
|
(294
|
)
|
|
$
|
3,794
|
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
35,137
|
|
|
$
|
1,005
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,005
|
|
|
$
|
—
|
|
|
$
|
36,142
|
|
Products
|
|
—
|
|
|
12
|
|
|
30
|
|
|
6,654
|
|
|
—
|
|
|
6,696
|
|
|
—
|
|
|
6,696
|
|
||||||||
Services
|
|
1,907
|
|
|
604
|
|
|
617
|
|
|
136
|
|
|
—
|
|
|
1,357
|
|
|
—
|
|
|
3,264
|
|
||||||||
Total revenues - unaffiliated customers
|
|
37,044
|
|
|
1,621
|
|
|
647
|
|
|
6,790
|
|
|
—
|
|
|
9,058
|
|
|
—
|
|
|
46,102
|
|
||||||||
Total revenues - affiliated customers
|
|
—
|
|
|
2,656
|
|
|
1,177
|
|
|
8,445
|
|
|
(275
|
)
|
|
12,003
|
|
|
(12,003
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
133
|
|
|
55
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
191
|
|
||||||||
Total revenues
|
|
$
|
37,177
|
|
|
$
|
4,332
|
|
|
$
|
1,825
|
|
|
$
|
15,237
|
|
|
$
|
(275
|
)
|
|
$
|
21,119
|
|
|
$
|
(12,003
|
)
|
|
$
|
46,293
|
|
Earnings from operations
|
|
$
|
2,113
|
|
|
$
|
404
|
|
|
$
|
371
|
|
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
1,467
|
|
|
$
|
—
|
|
|
$
|
3,580
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(269
|
)
|
|
(269
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
2,113
|
|
|
$
|
404
|
|
|
$
|
371
|
|
|
$
|
692
|
|
|
$
|
—
|
|
|
$
|
1,467
|
|
|
$
|
(269
|
)
|
|
$
|
3,311
|
|
|
|
|
|
Optum
|
|
|
|
|
||||||||||||||||||||||||
(in millions)
|
|
UnitedHealthcare
|
|
OptumHealth
|
|
OptumInsight
|
|
OptumRx
|
|
Optum Eliminations
|
|
Optum
|
|
Corporate and
Eliminations
|
|
Consolidated
|
||||||||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
115,295
|
|
|
$
|
2,780
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,780
|
|
|
$
|
—
|
|
|
$
|
118,075
|
|
Products
|
|
—
|
|
|
33
|
|
|
69
|
|
|
19,107
|
|
|
—
|
|
|
19,209
|
|
|
—
|
|
|
19,209
|
|
||||||||
Services
|
|
5,885
|
|
|
2,769
|
|
|
2,011
|
|
|
424
|
|
|
—
|
|
|
5,204
|
|
|
—
|
|
|
11,089
|
|
||||||||
Total revenues - unaffiliated customers
|
|
121,180
|
|
|
5,582
|
|
|
2,080
|
|
|
19,531
|
|
|
—
|
|
|
27,193
|
|
|
—
|
|
|
148,373
|
|
||||||||
Total revenues - affiliated customers
|
|
—
|
|
|
9,294
|
|
|
3,757
|
|
|
27,196
|
|
|
(894
|
)
|
|
39,353
|
|
|
(39,353
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
478
|
|
|
231
|
|
|
3
|
|
|
13
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
725
|
|
||||||||
Total revenues
|
|
$
|
121,658
|
|
|
$
|
15,107
|
|
|
$
|
5,840
|
|
|
$
|
46,740
|
|
|
$
|
(894
|
)
|
|
$
|
66,793
|
|
|
$
|
(39,353
|
)
|
|
$
|
149,098
|
|
Earnings from operations
|
|
$
|
6,736
|
|
|
$
|
1,267
|
|
|
$
|
1,080
|
|
|
$
|
2,149
|
|
|
$
|
—
|
|
|
$
|
4,496
|
|
|
$
|
—
|
|
|
$
|
11,232
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(878
|
)
|
|
(878
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
6,736
|
|
|
$
|
1,267
|
|
|
$
|
1,080
|
|
|
$
|
2,149
|
|
|
$
|
—
|
|
|
$
|
4,496
|
|
|
$
|
(878
|
)
|
|
$
|
10,354
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues - unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums
|
|
$
|
104,641
|
|
|
$
|
2,725
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,725
|
|
|
$
|
—
|
|
|
$
|
107,366
|
|
Products
|
|
1
|
|
|
36
|
|
|
67
|
|
|
19,595
|
|
|
—
|
|
|
19,698
|
|
|
—
|
|
|
19,699
|
|
||||||||
Services
|
|
5,569
|
|
|
1,813
|
|
|
1,862
|
|
|
429
|
|
|
—
|
|
|
4,104
|
|
|
—
|
|
|
9,673
|
|
||||||||
Total revenues - unaffiliated customers
|
|
110,211
|
|
|
4,574
|
|
|
1,929
|
|
|
20,024
|
|
|
—
|
|
|
26,527
|
|
|
—
|
|
|
136,738
|
|
||||||||
Total revenues - affiliated customers
|
|
—
|
|
|
7,682
|
|
|
3,324
|
|
|
24,554
|
|
|
(806
|
)
|
|
34,754
|
|
|
(34,754
|
)
|
|
—
|
|
||||||||
Investment and other income
|
|
422
|
|
|
139
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
567
|
|
||||||||
Total revenues
|
|
$
|
110,633
|
|
|
$
|
12,395
|
|
|
$
|
5,254
|
|
|
$
|
44,583
|
|
|
$
|
(806
|
)
|
|
$
|
61,426
|
|
|
$
|
(34,754
|
)
|
|
$
|
137,305
|
|
Earnings from operations
|
|
$
|
5,909
|
|
|
$
|
1,008
|
|
|
$
|
950
|
|
|
$
|
1,876
|
|
|
$
|
—
|
|
|
$
|
3,834
|
|
|
$
|
—
|
|
|
$
|
9,743
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(799
|
)
|
|
(799
|
)
|
||||||||
Earnings before income taxes
|
|
$
|
5,909
|
|
|
$
|
1,008
|
|
|
$
|
950
|
|
|
$
|
1,876
|
|
|
$
|
—
|
|
|
$
|
3,834
|
|
|
$
|
(799
|
)
|
|
$
|
8,944
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Consolidated revenues grew
9%
, UnitedHealthcare revenues grew
10%
and Optum revenues grew
8%
.
|
•
|
UnitedHealthcare grew to serve an additional
1.0 million
people.
|
•
|
Earnings from operations increased
14%
, including increases of
13%
at UnitedHealthcare and
16%
at Optum.
|
•
|
The effective income tax rate decreased 780 basis points to
32.5%
.
|
•
|
Diluted earnings per common share increased
24%
.
|
•
|
Cash flows from operations for the
nine months ended September 30, 2017
were
$16.2 billion
, aided by the September receipt of our October CMS premium payment of $4.6 billion.
|
(in millions, except percentages and per share data)
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Premiums
|
|
$
|
39,552
|
|
|
$
|
36,142
|
|
|
$
|
3,410
|
|
|
9
|
%
|
|
$
|
118,075
|
|
|
$
|
107,366
|
|
|
$
|
10,709
|
|
|
10
|
%
|
Products
|
|
6,665
|
|
|
6,696
|
|
|
(31
|
)
|
|
—
|
|
|
19,209
|
|
|
19,699
|
|
|
(490
|
)
|
|
(2
|
)
|
||||||
Services
|
|
3,858
|
|
|
3,264
|
|
|
594
|
|
|
18
|
|
|
11,089
|
|
|
9,673
|
|
|
1,416
|
|
|
15
|
|
||||||
Investment and other income
|
|
247
|
|
|
191
|
|
|
56
|
|
|
29
|
|
|
725
|
|
|
567
|
|
|
158
|
|
|
28
|
|
||||||
Total revenues
|
|
50,322
|
|
|
46,293
|
|
|
4,029
|
|
|
9
|
|
|
149,098
|
|
|
137,305
|
|
|
11,793
|
|
|
9
|
|
||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Medical costs
|
|
32,201
|
|
|
29,040
|
|
|
3,161
|
|
|
11
|
|
|
96,829
|
|
|
87,342
|
|
|
9,487
|
|
|
11
|
|
||||||
Operating costs
|
|
7,387
|
|
|
7,033
|
|
|
354
|
|
|
5
|
|
|
21,737
|
|
|
20,584
|
|
|
1,153
|
|
|
6
|
|
||||||
Cost of products sold
|
|
6,068
|
|
|
6,125
|
|
|
(57
|
)
|
|
(1
|
)
|
|
17,633
|
|
|
18,108
|
|
|
(475
|
)
|
|
(3
|
)
|
||||||
Depreciation and amortization
|
|
578
|
|
|
515
|
|
|
63
|
|
|
12
|
|
|
1,667
|
|
|
1,528
|
|
|
139
|
|
|
9
|
|
||||||
Total operating costs
|
|
46,234
|
|
|
42,713
|
|
|
3,521
|
|
|
8
|
|
|
137,866
|
|
|
127,562
|
|
|
10,304
|
|
|
8
|
|
||||||
Earnings from operations
|
|
4,088
|
|
|
3,580
|
|
|
508
|
|
|
14
|
|
|
11,232
|
|
|
9,743
|
|
|
1,489
|
|
|
15
|
|
||||||
Interest expense
|
|
(294
|
)
|
|
(269
|
)
|
|
(25
|
)
|
|
9
|
|
|
(878
|
)
|
|
(799
|
)
|
|
(79
|
)
|
|
10
|
|
||||||
Earnings before income taxes
|
|
3,794
|
|
|
3,311
|
|
|
483
|
|
|
15
|
|
|
10,354
|
|
|
8,944
|
|
|
1,410
|
|
|
16
|
|
||||||
Provision for income taxes
|
|
(1,233
|
)
|
|
(1,333
|
)
|
|
100
|
|
|
(8
|
)
|
|
(3,252
|
)
|
|
(3,579
|
)
|
|
327
|
|
|
(9
|
)
|
||||||
Net earnings
|
|
2,561
|
|
|
1,978
|
|
|
583
|
|
|
29
|
|
|
7,102
|
|
|
5,365
|
|
|
1,737
|
|
|
32
|
|
||||||
Earnings attributable to noncontrolling interests
|
|
(76
|
)
|
|
(10
|
)
|
|
(66
|
)
|
|
nm
|
|
|
(161
|
)
|
|
(32
|
)
|
|
(129
|
)
|
|
nm
|
|
||||||
Net earnings attributable to UnitedHealth Group common shareholders
|
|
$
|
2,485
|
|
|
$
|
1,968
|
|
|
$
|
517
|
|
|
26
|
%
|
|
$
|
6,941
|
|
|
$
|
5,333
|
|
|
$
|
1,608
|
|
|
30
|
%
|
Diluted earnings per share attributable to UnitedHealth Group common shareholders
|
|
$
|
2.51
|
|
|
$
|
2.03
|
|
|
$
|
0.48
|
|
|
24
|
%
|
|
$
|
7.06
|
|
|
$
|
5.51
|
|
|
$
|
1.55
|
|
|
28
|
%
|
Medical care ratio (a)
|
|
81.4
|
%
|
|
80.3
|
%
|
|
1.1
|
%
|
|
|
|
82.0
|
%
|
|
81.3
|
%
|
|
0.7
|
%
|
|
|
||||||||
Operating cost ratio
|
|
14.7
|
|
|
15.2
|
|
|
(0.5
|
)
|
|
|
|
14.6
|
|
|
15.0
|
|
|
(0.4
|
)
|
|
|
||||||||
Operating margin
|
|
8.1
|
|
|
7.7
|
|
|
0.4
|
|
|
|
|
7.5
|
|
|
7.1
|
|
|
0.4
|
|
|
|
||||||||
Tax rate
|
|
32.5
|
|
|
40.3
|
|
|
(7.8
|
)
|
|
|
|
31.4
|
|
|
40.0
|
|
|
(8.6
|
)
|
|
|
||||||||
Net earnings margin (b)
|
|
4.9
|
|
|
4.3
|
|
|
0.6
|
|
|
|
|
4.7
|
|
|
3.9
|
|
|
0.8
|
|
|
|
||||||||
Return on equity (c)
|
|
22.5
|
%
|
|
21.3
|
%
|
|
1.2
|
%
|
|
|
|
22.0
|
%
|
|
19.9
|
%
|
|
2.1
|
%
|
|
|
(a)
|
Medical care ratio is calculated as medical costs divided by premium revenue.
|
(b)
|
Net earnings margin attributable to UnitedHealth Group shareholders.
|
(c)
|
Return on equity is calculated as annualized net earnings divided by average equity. Average equity is calculated using the equity balance at the end of the preceding year and the equity balances at the end of each of the quarters in the year presented.
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||
(in millions, except percentages)
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
UnitedHealthcare
|
|
$
|
40,734
|
|
|
$
|
37,177
|
|
|
$
|
3,557
|
|
|
10
|
%
|
|
$
|
121,658
|
|
|
$
|
110,633
|
|
|
$
|
11,025
|
|
|
10
|
%
|
OptumHealth
|
|
5,252
|
|
|
4,332
|
|
|
920
|
|
|
21
|
|
|
15,107
|
|
|
12,395
|
|
|
2,712
|
|
|
22
|
|
||||||
OptumInsight
|
|
2,004
|
|
|
1,825
|
|
|
179
|
|
|
10
|
|
|
5,840
|
|
|
5,254
|
|
|
586
|
|
|
11
|
|
||||||
OptumRx
|
|
15,953
|
|
|
15,237
|
|
|
716
|
|
|
5
|
|
|
46,740
|
|
|
44,583
|
|
|
2,157
|
|
|
5
|
|
||||||
Optum eliminations
|
|
(324
|
)
|
|
(275
|
)
|
|
(49
|
)
|
|
18
|
|
|
(894
|
)
|
|
(806
|
)
|
|
(88
|
)
|
|
11
|
|
||||||
Optum
|
|
22,885
|
|
|
21,119
|
|
|
1,766
|
|
|
8
|
|
|
66,793
|
|
|
61,426
|
|
|
5,367
|
|
|
9
|
|
||||||
Eliminations
|
|
(13,297
|
)
|
|
(12,003
|
)
|
|
(1,294
|
)
|
|
11
|
|
|
(39,353
|
)
|
|
(34,754
|
)
|
|
(4,599
|
)
|
|
13
|
|
||||||
Consolidated revenues
|
|
$
|
50,322
|
|
|
$
|
46,293
|
|
|
$
|
4,029
|
|
|
9
|
%
|
|
$
|
149,098
|
|
|
$
|
137,305
|
|
|
$
|
11,793
|
|
|
9
|
%
|
Earnings from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
UnitedHealthcare
|
|
$
|
2,391
|
|
|
$
|
2,113
|
|
|
$
|
278
|
|
|
13
|
%
|
|
$
|
6,736
|
|
|
$
|
5,909
|
|
|
$
|
827
|
|
|
14
|
%
|
OptumHealth
|
|
513
|
|
|
404
|
|
|
109
|
|
|
27
|
|
|
1,267
|
|
|
1,008
|
|
|
259
|
|
|
26
|
|
||||||
OptumInsight
|
|
414
|
|
|
371
|
|
|
43
|
|
|
12
|
|
|
1,080
|
|
|
950
|
|
|
130
|
|
|
14
|
|
||||||
OptumRx
|
|
770
|
|
|
692
|
|
|
78
|
|
|
11
|
|
|
2,149
|
|
|
1,876
|
|
|
273
|
|
|
15
|
|
||||||
Optum
|
|
1,697
|
|
|
1,467
|
|
|
230
|
|
|
16
|
|
|
4,496
|
|
|
3,834
|
|
|
662
|
|
|
17
|
|
||||||
Consolidated earnings from operations
|
|
$
|
4,088
|
|
|
$
|
3,580
|
|
|
$
|
508
|
|
|
14
|
%
|
|
$
|
11,232
|
|
|
$
|
9,743
|
|
|
$
|
1,489
|
|
|
15
|
%
|
Operating margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
UnitedHealthcare
|
|
5.9
|
%
|
|
5.7
|
%
|
|
0.2
|
%
|
|
|
|
5.5
|
%
|
|
5.3
|
%
|
|
0.2
|
%
|
|
|
||||||||
OptumHealth
|
|
9.8
|
|
|
9.3
|
|
|
0.5
|
|
|
|
|
8.4
|
|
|
8.1
|
|
|
0.3
|
|
|
|
||||||||
OptumInsight
|
|
20.7
|
|
|
20.3
|
|
|
0.4
|
|
|
|
|
18.5
|
|
|
18.1
|
|
|
0.4
|
|
|
|
||||||||
OptumRx
|
|
4.8
|
|
|
4.5
|
|
|
0.3
|
|
|
|
|
4.6
|
|
|
4.2
|
|
|
0.4
|
|
|
|
||||||||
Optum
|
|
7.4
|
|
|
6.9
|
|
|
0.5
|
|
|
|
|
6.7
|
|
|
6.2
|
|
|
0.5
|
|
|
|
||||||||
Consolidated operating margin
|
|
8.1
|
%
|
|
7.7
|
%
|
|
0.4
|
%
|
|
|
|
7.5
|
%
|
|
7.1
|
%
|
|
0.4
|
%
|
|
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease)
|
||||||||||||||||||||||
(in millions, except percentages)
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||||||||||||
UnitedHealthcare Employer & Individual
|
|
$
|
13,054
|
|
|
$
|
13,251
|
|
|
$
|
(197
|
)
|
|
(1
|
)%
|
|
$
|
38,759
|
|
|
$
|
39,580
|
|
|
$
|
(821
|
)
|
|
(2
|
)%
|
UnitedHealthcare Medicare & Retirement
|
|
16,306
|
|
|
13,927
|
|
|
2,379
|
|
|
17
|
|
|
49,605
|
|
|
42,286
|
|
|
7,319
|
|
|
17
|
|
||||||
UnitedHealthcare Community & State
|
|
9,378
|
|
|
8,312
|
|
|
1,066
|
|
|
13
|
|
|
27,505
|
|
|
24,303
|
|
|
3,202
|
|
|
13
|
|
||||||
UnitedHealthcare Global
|
|
1,996
|
|
|
1,687
|
|
|
309
|
|
|
18
|
|
|
5,789
|
|
|
4,464
|
|
|
1,325
|
|
|
30
|
|
||||||
Total UnitedHealthcare revenues
|
|
$
|
40,734
|
|
|
$
|
37,177
|
|
|
$
|
3,557
|
|
|
10
|
%
|
|
$
|
121,658
|
|
|
$
|
110,633
|
|
|
$
|
11,025
|
|
|
10
|
%
|
|
|
September 30,
|
|
Increase/(Decrease)
|
||||||||
(in thousands, except percentages)
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||
Commercial group:
|
|
|
|
|
|
|
|
|
||||
Risk-based
|
|
7,805
|
|
|
7,265
|
|
|
540
|
|
|
7
|
%
|
Fee-based
|
|
18,610
|
|
|
18,880
|
|
|
(270
|
)
|
|
(1
|
)
|
Total commercial group
|
|
26,415
|
|
|
26,145
|
|
|
270
|
|
|
1
|
|
Individual
|
|
515
|
|
|
1,485
|
|
|
(970
|
)
|
|
(65
|
)
|
Fee-based TRICARE
|
|
2,855
|
|
|
2,855
|
|
|
—
|
|
|
—
|
|
Total commercial
|
|
29,785
|
|
|
30,485
|
|
|
(700
|
)
|
|
(2
|
)
|
Medicare Advantage
|
|
4,390
|
|
|
3,600
|
|
|
790
|
|
|
22
|
|
Medicaid
|
|
6,375
|
|
|
5,790
|
|
|
585
|
|
|
10
|
|
Medicare Supplement (Standardized)
|
|
4,415
|
|
|
4,245
|
|
|
170
|
|
|
4
|
|
Total public and senior
|
|
15,180
|
|
|
13,635
|
|
|
1,545
|
|
|
11
|
|
Total UnitedHealthcare - domestic medical
|
|
44,965
|
|
|
44,120
|
|
|
845
|
|
|
2
|
|
International
|
|
4,080
|
|
|
3,970
|
|
|
110
|
|
|
3
|
|
Total UnitedHealthcare - medical
|
|
49,045
|
|
|
48,090
|
|
|
955
|
|
|
2
|
%
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
||||
Medicare Part D stand-alone
|
|
4,945
|
|
|
4,945
|
|
|
—
|
|
|
—
|
%
|
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease)
|
||||||||
(in millions)
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||
Sources of cash:
|
|
|
|
|
|
|
||||||
Cash provided by operating activities
|
|
$
|
16,173
|
|
|
$
|
11,204
|
|
|
$
|
4,969
|
|
Issuances of commercial paper and long-term debt, net of repayments
|
|
—
|
|
|
1,077
|
|
|
(1,077
|
)
|
|||
Proceeds from common stock issuances
|
|
604
|
|
|
387
|
|
|
217
|
|
|||
Customer funds administered
|
|
3,659
|
|
|
1,249
|
|
|
2,410
|
|
|||
Total sources of cash
|
|
20,436
|
|
|
13,917
|
|
|
|
||||
Uses of cash:
|
|
|
|
|
|
|
||||||
Common stock repurchases
|
|
(1,173
|
)
|
|
(1,117
|
)
|
|
(56
|
)
|
|||
Cash paid for acquisitions, net of cash assumed
|
|
(908
|
)
|
|
(2,727
|
)
|
|
1,819
|
|
|||
Purchases of investments, net of sales and maturities
|
|
(3,566
|
)
|
|
(4,769
|
)
|
|
1,203
|
|
|||
Repayments of commercial paper and long-term debt, net of issuances
|
|
(4,877
|
)
|
|
—
|
|
|
(4,877
|
)
|
|||
Purchases of property, equipment and capitalized software
|
|
(1,391
|
)
|
|
(1,220
|
)
|
|
(171
|
)
|
|||
Cash dividends paid
|
|
(2,046
|
)
|
|
(1,666
|
)
|
|
(380
|
)
|
|||
Other
|
|
(654
|
)
|
|
(615
|
)
|
|
(39
|
)
|
|||
Total uses of cash
|
|
(14,615
|
)
|
|
(12,114
|
)
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
18
|
|
|
70
|
|
|
(52
|
)
|
|||
Net increase in cash and cash equivalents
|
|
$
|
5,839
|
|
|
$
|
1,873
|
|
|
$
|
3,966
|
|
|
Moody’s
|
|
Standard & Poor’s
|
|
Fitch
|
|
A.M. Best
|
||||||||
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
|
Ratings
|
|
Outlook
|
Senior unsecured debt
|
A3
|
|
Stable
|
|
A+
|
|
Negative
|
|
A-
|
|
Negative
(a)
|
|
bbb+
|
|
Stable
|
Commercial paper
|
P-2
|
|
n/a
|
|
A-1
|
|
n/a
|
|
F1
|
|
n/a
|
|
AMB-2
|
|
n/a
|
(a)
|
In October 2017, Fitch affirmed our ratings and changed our outlook to Stable.
|
|
|
September 30, 2017
|
||||||||||||||
Increase (Decrease) in Market Interest Rate
|
|
Investment
Income Per
Annum (a)
|
|
Interest
Expense Per
Annum (a)
|
|
Fair Value of
Financial Assets (b) |
|
Fair Value of
Financial Liabilities
|
||||||||
2 %
|
|
$
|
383
|
|
|
$
|
174
|
|
|
$
|
(1,953
|
)
|
|
$
|
(4,005
|
)
|
1
|
|
192
|
|
|
87
|
|
|
(990
|
)
|
|
(2,169
|
)
|
||||
(1)
|
|
(192
|
)
|
|
(87
|
)
|
|
950
|
|
|
2,580
|
|
||||
(2)
|
|
(211
|
)
|
|
(107
|
)
|
|
1,618
|
|
|
5,619
|
|
(a)
|
Given the low absolute level of short-term market rates on our floating-rate assets and liabilities as of
September 30, 2017
, the assumed hypothetical change in interest rates does not reflect the full 200 basis point reduction in interest expense as the rate cannot fall below zero.
|
(b)
|
As of
September 30, 2017
, some of our investments had interest rates below 2% so the assumed hypothetical change in the fair value of investments does not reflect the full 200 basis point reduction.
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 6.
|
EXHIBITS**
|
|
|
||
|
|
||
4.1
|
|
|
Senior Indenture, dated as of November 15, 1998, between United HealthCare Corporation and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3/A, SEC File Number 333-66013, filed on January 11, 1999)
|
|
|
||
|
|
||
|
|
||
*
10.1
|
|
|
|
*
10.2
|
|
|
|
*
10.3
|
|
|
|
|
|
||
|
|
||
|
|
||
101
|
|
|
The following materials from UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed on November 7, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Changes in Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
|
*
|
|
Denotes management contracts and compensation plans in which certain directors and named executive officers participate and which are being filed pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K.
|
**
|
|
Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of certain holders of long-term debt are not filed. The Company will furnish copies thereof to the SEC upon request.
|
/s/ D
AVID
S. W
ICHMANN
|
|
Chief Executive Officer
(principal executive officer) |
Dated:
|
November 7, 2017
|
David S. Wichmann
|
|
|
|
|
|
|
|
||
/s/ J
OHN
F. R
EX
|
|
Executive Vice President and
Chief Financial Officer
(principal financial officer) |
Dated:
|
November 7, 2017
|
John F. Rex
|
|
|
|
|
|
|
|
||
/
S/
T
HOMAS
E. R
OOS
|
|
Senior Vice President and
Chief Accounting Officer
(principal accounting officer) |
Dated:
|
November 7, 2017
|
Thomas E. Roos
|
|
|
|
•
|
a series of five or ten annual installments following the completion of his or her service on the Board of Directors;
|
•
|
a delayed lump sum following either the fifth or tenth anniversary of the completion of his or her service on the Board of Directors;
|
•
|
for cash deferrals, an immediate lump sum upon the completion of his or her service on the Board of Directors; or
|
•
|
pre-selected amounts to be distributed on pre-selected dates while the director remains a member of the Board of Directors.
|
United HealthCare Services, Inc.
|
|
Executive
|
||
By:
|
/s/ D. Ellen Wilson
|
|
By:
|
/s/ David Wichmann
|
Its:
|
Executive Vice President, Human Capital
|
|
|
|
|
|
|
|
|
Date:
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August 16, 2017
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Date:
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August 16, 2017
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United HealthCare Services, Inc.
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Executive
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By:
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/s/ D. Ellen Wilson
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By:
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/s/ Larry C. Renfro
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Its:
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Executive Vice President, Human Capital
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Date:
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August 15, 2017
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Date:
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July 28, 2017
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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(dollars in millions)
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2017
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2016
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2017
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2016
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Earnings before income taxes
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$
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3,794
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$
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3,311
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$
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10,354
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$
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8,944
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Fixed charges
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346
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316
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1,030
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934
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Total earnings available for fixed charges
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$
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4,140
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$
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3,627
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$
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11,384
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$
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9,878
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Fixed Charges:
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Interest expense
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$
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294
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$
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269
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$
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878
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$
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799
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Interest component of rental payments
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52
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47
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152
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135
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Total fixed charges
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$
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346
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$
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316
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$
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1,030
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$
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934
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Ratio of earnings to fixed charges
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12.0
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11.5
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11.1
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10.6
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1.
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I have reviewed this report on Form 10-Q of UnitedHealth Group Incorporated (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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November 7, 2017
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/s/ D
AVID
S. W
ICHMANN
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David S. Wichmann
Chief Executive Officer
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1.
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I have reviewed this report on Form 10-Q of UnitedHealth Group Incorporated (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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November 7, 2017
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/s/ J
OHN
F. R
EX
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John F. Rex
Executive Vice President and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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November 7, 2017
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/s/ D
AVID
S. W
ICHMANN
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David S. Wichmann
Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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November 7, 2017
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/s/ JOHN F. REX
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John F. Rex
Executive Vice President and Chief Financial Officer |