Delaware | 1-10864 | 41-1321939 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
9900 Bren Road East, | 655 New York Avenue NW | |||||||||||||||||||||||||
Minnetonka, | Minnesota | 55343 | Washington, | DC | 20001 | |||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | (Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.01 par value | UNH | New York Stock Exchange |
Exhibit | Description | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
UNITEDHEALTH GROUP INCORPORATED |
||||||||||||||
By: | /s/ Kuai H. Leong | |||||||||||||
Kuai H. Leong | ||||||||||||||
Senior Deputy General Counsel and Deputy Corporate Secretary |
Quarterly Financial Performance | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | December 31, | |||||||||||||||||||||||
2024 | 2024 (Adj) | 2023 | 2023 | |||||||||||||||||||||||
Revenues | $100.8 billion | $100.8 billion | $92.4 billion | $94.4 billion | ||||||||||||||||||||||
Earnings from Operations | $8.7 billion | $9.0 billion | $8.5 billion | $7.7 billion | ||||||||||||||||||||||
Net Margin | 6.0% | 6.3% | 6.3% | 5.8% | ||||||||||||||||||||||
Quarterly Financial Performance | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, | September 30, | December 31, | ||||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||||
Revenues | $74.9 billion | $69.9 billion | $70.8 billion | |||||||||||||||||
Earnings from Operations | $4.2 billion | $4.6 billion | $3.1 billion | |||||||||||||||||
Operating Margin | 5.6% | 6.6% | 4.4% | |||||||||||||||||
Quarterly Financial Performance | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | December 31, | |||||||||||||||||||||||
2024 | 2024 (Adj) | 2023 | 2023 | |||||||||||||||||||||||
Revenues | $63.9 billion | $63.9 billion | $56.7 billion | $59.5 billion | ||||||||||||||||||||||
Earnings from Operations | $4.5 billion | $4.8 billion | $3.9 billion | $4.6 billion | ||||||||||||||||||||||
Operating Margin | 7.0% | 7.4% | 6.9% | 7.7% | ||||||||||||||||||||||
Investor Contact: | Media Contact: | |||||||
Zack Sopcak | Eric Hausman | |||||||
952-936-7215 | 952-936-3963 | |||||||
zack.sopcak@uhg.com | eric.hausman@uhg.com |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Premiums | $77,442 | $72,339 | $232,327 | $217,599 | ||||||||||||||||||||||
Products | 12,631 | 10,354 | 36,751 | 31,272 | ||||||||||||||||||||||
Services | 9,104 | 8,671 | 26,742 | 25,414 | ||||||||||||||||||||||
Investment and other income | 1,643 | 997 | 3,651 | 2,910 | ||||||||||||||||||||||
Total revenues | 100,820 | 92,361 | 299,471 | 277,195 | ||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||
Medical costs | 65,957 | 59,550 | 197,150 | 179,663 | ||||||||||||||||||||||
Operating costs | 13,280 | 13,855 | 40,519 | 41,289 | ||||||||||||||||||||||
Cost of products sold | 11,834 | 9,423 | 34,230 | 28,576 | ||||||||||||||||||||||
Depreciation and amortization | 1,041 | 1,007 | 3,058 | 2,998 | ||||||||||||||||||||||
Total operating costs | 92,112 | 83,835 | 274,957 | 252,526 | ||||||||||||||||||||||
Earnings from operations | 8,708 | 8,526 | 24,514 | 24,669 | ||||||||||||||||||||||
Interest expense | (1,074) | (834) | (2,903) | (2,416) | ||||||||||||||||||||||
Loss on sale of subsidiary and subsidiaries held for sale | (20) | — | (8,331) | — | ||||||||||||||||||||||
Earnings before income taxes | 7,614 | 7,692 | 13,280 | 22,253 | ||||||||||||||||||||||
Provision for income taxes | (1,356) | (1,654) | (3,822) | (4,784) | ||||||||||||||||||||||
Net earnings | 6,258 | 6,038 | 9,458 | 17,469 | ||||||||||||||||||||||
Earnings attributable to noncontrolling interests | (203) | (197) | (596) | (543) | ||||||||||||||||||||||
Net earnings attributable to UnitedHealth Group common shareholders | $6,055 | $5,841 | $8,862 | $16,926 | ||||||||||||||||||||||
Diluted earnings per share attributable to UnitedHealth Group common shareholders | $6.51 | $6.24 | $9.53 | $18.01 | ||||||||||||||||||||||
Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a) | $7.15 | $6.56 | $20.85 | $18.95 | ||||||||||||||||||||||
Diluted weighted-average common shares outstanding | 930 | 936 | 930 | 940 |
September 30, 2024 |
December 31, 2023 |
|||||||||||||
Assets | ||||||||||||||
Cash and short-term investments | $37,134 | $29,628 | ||||||||||||
Accounts receivable, net | 20,024 | 21,276 | ||||||||||||
Other current assets | 35,100 | 27,533 | ||||||||||||
Total current assets | 92,258 | 78,437 | ||||||||||||
Long-term investments | 48,689 | 47,609 | ||||||||||||
Other long-term assets | 158,362 | 147,674 | ||||||||||||
Total assets | $299,309 | $273,720 | ||||||||||||
Liabilities, redeemable noncontrolling interests and equity | ||||||||||||||
Medical costs payable | $33,951 | $32,395 | ||||||||||||
Short-term borrowings and current maturities of long-term debt | 3,909 | 4,274 | ||||||||||||
Other current liabilities | 63,705 | 62,385 | ||||||||||||
Total current liabilities | 101,565 | 99,054 | ||||||||||||
Long-term debt, less current maturities | 74,101 | 58,263 | ||||||||||||
Other long-term liabilities | 19,188 | 17,484 | ||||||||||||
Redeemable noncontrolling interests | 4,574 | 4,498 | ||||||||||||
Equity | 99,881 | 94,421 | ||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $299,309 | $273,720 |
Nine Months Ended September 30, |
||||||||||||||
2024 | 2023 | |||||||||||||
Operating Activities | ||||||||||||||
Net earnings | $9,458 | $17,469 | ||||||||||||
Noncash items: | ||||||||||||||
Depreciation and amortization | 3,058 | 2,998 | ||||||||||||
Deferred income taxes and other | (844) | (553) | ||||||||||||
Share-based compensation | 831 | 851 | ||||||||||||
Loss on sale of subsidiary and subsidiaries held for sale | 8,331 | — | ||||||||||||
Net changes in operating assets and liabilities | 1,001 | 13,496 | ||||||||||||
Cash flows from operating activities | 21,835 | 34,261 | ||||||||||||
Investing Activities | ||||||||||||||
Sales and maturities of investments, net of purchases (purchases, net of sales and maturities) | 1,852 | (2,850) | ||||||||||||
Purchases of property, equipment and capitalized software | (2,587) | (2,427) | ||||||||||||
Cash paid for acquisitions and other transactions, net | (11,674) | (8,389) | ||||||||||||
Loans to care providers - cyberattack | (8,904) | — | ||||||||||||
Repayment of care provider loans - cyberattack | 3,189 | — | ||||||||||||
Other, net | (1,284) | (721) | ||||||||||||
Cash flows used for investing activities | (19,408) | (14,387) | ||||||||||||
Financing Activities | ||||||||||||||
Common share repurchases | (4,028) | (6,500) | ||||||||||||
Dividends paid | (5,601) | (5,023) | ||||||||||||
Net change in short-term borrowings and long-term debt | 15,120 | 5,848 | ||||||||||||
Other, net | (661) | 1,302 | ||||||||||||
Cash flows from (used for) financing activities | 4,830 | (4,373) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (30) | 49 | ||||||||||||
Increase in cash and cash equivalents, including cash within businesses held for sale | 7,227 | 15,550 | ||||||||||||
Less: cash within businesses held for sale | (254) | — | ||||||||||||
Net increase in cash and cash equivalents | 6,973 | 15,550 | ||||||||||||
Cash and cash equivalents, beginning of period | 25,427 | 23,365 | ||||||||||||
Cash and cash equivalents, end of period | $32,400 | $38,915 |
Optum | UnitedHealth Group Consolidated (a) |
|||||||||||||||||||||||||||||||||||||
UnitedHealthcare | Optum Health |
Optum Insight |
Optum Rx |
Total Optum (a) |
||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $74,853 | $25,917 | $4,931 | $34,207 | $63,925 | $100,820 | ||||||||||||||||||||||||||||||||
Business disruption impacts - cyberattack (c) | $— | $— | $134 | $— | $134 | $134 | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $69,853 | $23,864 | $4,977 | $28,857 | $56,737 | $92,361 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $224,076 | $79,698 | $13,976 | $97,457 | $187,856 | $299,471 | ||||||||||||||||||||||||||||||||
South American impacts | 220 | — | — | — | — | 220 | ||||||||||||||||||||||||||||||||
Adjusted revenues (b) | $224,296 | $79,698 | $13,976 | $97,457 | $187,856 | $299,691 | ||||||||||||||||||||||||||||||||
Business disruption impacts - cyberattack (c) | $— | $— | $747 | $— | $747 | $747 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $210,552 | $70,785 | $14,147 | $84,921 | $167,140 | $277,195 |
Employer & Individual (E&I) | Medicare & Retirement |
Community & State |
Total UnitedHealthcare |
|||||||||||||||||||||||||||||||||||
Domestic | Global | Total E&I | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $18,985 | $769 | $19,754 | $34,904 | $20,195 | $74,853 | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $16,854 | $2,417 | $19,271 | $32,022 | $18,560 | $69,853 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $55,470 | $2,892 | $58,362 | $105,294 | $60,420 | $224,076 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Total revenues | $50,157 | $6,905 | $57,062 | $97,468 | $56,022 | $210,552 |
Optum | UnitedHealth Group Consolidated |
||||||||||||||||||||||||||||||||||||||||
UnitedHealthcare | Optum Health |
Optum Insight |
Optum Rx |
Total Optum |
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Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Earnings from operations | $4,212 | $2,161 | $791 | $1,544 | $4,496 | $8,708 | |||||||||||||||||||||||||||||||||||
Direct response costs - cyberattack | — | — | 257 | — | 257 | 257 | |||||||||||||||||||||||||||||||||||
Adjusted earnings from operations (b) | $4,212 | $2,161 | $1,048 | $1,544 | $4,753 | $8,965 | |||||||||||||||||||||||||||||||||||
Total direct response costs - cyberattack (c) | $— | $— | $257 | $— | $257 | $341 | |||||||||||||||||||||||||||||||||||
Operating margin | 5.6 | % | 8.3 | % | 16.0 | % | 4.5 | % | 7.0 | % | 8.6 | % | |||||||||||||||||||||||||||||
Adjusted operating margin (b) | 5.6 | % | 8.3 | % | 21.3 | % | 4.5 | % | 7.4 | % | 8.9 | % | |||||||||||||||||||||||||||||
Business disruption impacts - cyberattack (d) | $— | $— | $134 | $— | $134 | $134 | |||||||||||||||||||||||||||||||||||
Total cyberattack impacts | $— | $— | $391 | $— | $391 | $475 | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Earnings from operations | $4,592 | $1,568 | $1,109 | $1,257 | $3,934 | $8,526 | |||||||||||||||||||||||||||||||||||
Operating margin | 6.6 | % | 6.6 | % | 22.3 | % | 4.4 | % | 6.9 | % | 9.2 | % | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Earnings from operations | $12,611 | $5,979 | $1,827 | $4,097 | $11,903 | $24,514 | |||||||||||||||||||||||||||||||||||
Direct response costs - cyberattack | 485 | (a) | 160 | (a) | 876 | — | 1,036 | 1,521 | |||||||||||||||||||||||||||||||||
South American impacts | 115 | — | — | — | — | 115 | |||||||||||||||||||||||||||||||||||
Adjusted earnings from operations (b) | $13,211 | $6,139 | $2,703 | $4,097 | $12,939 | $26,150 | |||||||||||||||||||||||||||||||||||
Total direct response costs - cyberattack (c) | $485 | $160 | $876 | $— | $1,036 | $1,710 | |||||||||||||||||||||||||||||||||||
Operating margin | 5.6 | % | 7.5 | % | 13.1 | % | 4.2 | % | 6.3 | % | 8.2 | % | |||||||||||||||||||||||||||||
Adjusted operating margin (b) | 5.9 | % | 7.7 | % | 19.3 | % | 4.2 | % | 6.9 | % | 8.7 | % | |||||||||||||||||||||||||||||
Business disruption impacts - cyberattack (d) | $— | $— | $747 | $— | $747 | $747 | |||||||||||||||||||||||||||||||||||
Total cyberattack impacts | $485 | $160 | $1,623 | $— | $1,783 | $2,457 | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Earnings from operations | $13,293 | $4,869 | $2,984 | $3,523 | $11,376 | $24,669 | |||||||||||||||||||||||||||||||||||
Operating margin | 6.3 | % | 6.9 | % | 21.1 | % | 4.1 | % | 6.8 | % | 8.9 | % |
People Served | September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||||||||
Commercial - Domestic: | ||||||||||||||||||||||||||
Risk-based | 8,900 | 8,735 | 8,115 | 8,120 | ||||||||||||||||||||||
Fee-based | 20,830 | 20,835 | 19,200 | 19,130 | ||||||||||||||||||||||
Total Commercial - Domestic | 29,730 | 29,570 | 27,315 | 27,250 | ||||||||||||||||||||||
Medicare Advantage | 7,810 | 7,770 | 7,695 | 7,645 | ||||||||||||||||||||||
Medicaid | 7,450 | 7,410 | 7,845 | 8,065 | ||||||||||||||||||||||
Medicare Supplement (Standardized) | 4,340 | 4,335 | 4,355 | 4,345 | ||||||||||||||||||||||
Total Community and Senior | 19,600 | 19,515 | 19,895 | 20,055 | ||||||||||||||||||||||
Total UnitedHealthcare - Domestic Medical | 49,330 | 49,085 | 47,210 | 47,305 | ||||||||||||||||||||||
Commercial - Global | 1,335 | 1,330 | 5,540 | 5,475 | ||||||||||||||||||||||
Total UnitedHealthcare - Medical | 50,665 | 50,415 | 52,750 | 52,780 | ||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||
Medicare Part D stand-alone | 3,055 | 3,065 | 3,315 | 3,355 |
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||
Optum Health Consumers Served (in millions) | 104 | 104 | 103 | 103 | ||||||||||||||||||||||
Optum Insight Contract Backlog (in billions) | $32.8 | $32.6 | $32.1 | $31.6 | ||||||||||||||||||||||
Optum Rx Quarterly Adjusted Scripts (in millions) | 407 | 399 | 400 | 383 |
Use of Non-GAAP Financial Measures | ||
Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin, adjusted net margin and adjusted revenues are non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Adjustments made to these measures are as follows:
Intangible Amortization: Adjusted net earnings per share excludes intangible amortization from the relevant GAAP measure. As amortization fluctuates based on the size and timing of the Company’s acquisition activity, management believes this exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company’s revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share.
South American Impacts: Adjusted net earnings per share and adjusted net margin excludes the effects of various international transactions, including the loss on sale of our Brazilian operations that was completed on February 6, 2024, the loss on our remaining South American operations being classified as held for sale and certain other non-recurring matters impacting our South American operations. Adjusted earnings from operations, adjusted operating margin and adjusted revenues excludes the effects of certain non-recurring matters impacting our South American operations. As these matters are related to the Company's strategy to exit South America, the impact is not representative of the Company's underlying business performance and therefore management believes the exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period.
Direct Response Costs - Cyberattack: Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin and adjusted net margin excludes cyberattack direct response costs. Management believes the exclusion of costs incurred to investigate and remediate the attack, other direct and incremental costs incurred as a result of the cyberattack and incremental costs for accommodations to support care providers presents a more useful comparison of the Company's and its reportable segments' underlying business performance and trends from period to period.
Note: See pages 4 and 5 for reconciliation of GAAP amounts to adjusted revenues, adjusted earnings from operations and adjusted operating margin.
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
Projected Year Ended December 31, |
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2024 | 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||||||||||
Net earnings attributable to UnitedHealth Group common shareholders | $6,055 | $5,841 | $8,862 | $16,926 | $14,375 - $14,650 | |||||||||||||||||||||||||||
Intangible amortization | 426 | 392 | 1,242 | 1,178 | ~1,650 | |||||||||||||||||||||||||||
Tax effect of intangible amortization | (104) | (96) | (305) | (292) | ~(410) | |||||||||||||||||||||||||||
South American impacts | 9 | — | 8,435 | — | ~8,515 | |||||||||||||||||||||||||||
Tax effect of South American impacts | 4 | — | (153) | — | ~(175) | |||||||||||||||||||||||||||
Direct response costs - cyberattack | 341 | — | 1,710 | — | ~2,000 | |||||||||||||||||||||||||||
Tax effect of direct response costs - cyberattack | (80) | — | (403) | — | ~(470) | |||||||||||||||||||||||||||
Adjusted net earnings attributable to UnitedHealth Group common shareholders | $6,651 | $6,137 | $19,388 | $17,812 | $25,475 - $25,750 | |||||||||||||||||||||||||||
Diluted earnings per share | $6.51 | $6.24 | $9.53 | $18.01 | $15.50 - $15.75 | |||||||||||||||||||||||||||
Intangible amortization per share | 0.46 | 0.42 | 1.34 | 1.25 | ~1.80 | |||||||||||||||||||||||||||
Tax effect of intangible amortization per share | (0.11) | (0.10) | (0.33) | (0.31) | ~(0.45) | |||||||||||||||||||||||||||
South American impacts per share | 0.01 | — | 9.07 | — | ~9.15 | |||||||||||||||||||||||||||
Tax effect of South American impacts per share | — | — | (0.17) | — | ~(0.15) | |||||||||||||||||||||||||||
Direct response costs - cyberattack per share | 0.37 | — | 1.84 | — | ~2.15 | |||||||||||||||||||||||||||
Tax effects of direct response costs - cyberattack per share | (0.09) | — | (0.43) | — | ~(0.50) | |||||||||||||||||||||||||||
Adjusted diluted earnings per share | $7.15 | $6.56 | $20.85 | $18.95 | $27.50 - $27.75 | |||||||||||||||||||||||||||
Additional Information: Total Cyberattack Impacts | ||||||||||||||||||||||||||||||||
Business disruption impacts (a) | $134 | $— | $747 | $— | ~$870 | |||||||||||||||||||||||||||
Tax effect of business disruption impacts (a) | (21) | — | (139) | — | ~(165) | |||||||||||||||||||||||||||
Business disruption impacts, net of tax (a) | $113 | $— | $608 | $— | ~$705 | |||||||||||||||||||||||||||
Business disruption impacts per share (a) | $0.12 | $— | $0.65 | $— | ~$0.75 | |||||||||||||||||||||||||||
Total cyberattack impacts | $475 | $— | $2,457 | $— | ~2,870 | |||||||||||||||||||||||||||
Tax effect of total cyberattack impacts | (101) | — | (542) | — | ~(635) | |||||||||||||||||||||||||||
Total cyberattack impacts, net of tax | $374 | $— | $1,915 | $— | ~$2,235 | |||||||||||||||||||||||||||
Total cyberattack impacts per share | $0.40 | $— | $2.06 | $— | ~$2.40 |
Three Months Ended September 30, 2024 |
Nine Months Ended September 30, 2024 |
|||||||||||||
Consolidated revenue | $100,820 | $299,471 | ||||||||||||
South American impacts | — | 220 | ||||||||||||
Adjusted consolidated revenues | $100,820 | $299,691 | ||||||||||||
Net earnings attributable to UnitedHealth Group common shareholders | $6,055 | $8,862 | ||||||||||||
South American impacts | 9 | 8,435 | ||||||||||||
Tax effect of South American impacts | 4 | (153) | ||||||||||||
Direct response costs - cyberattack | 341 | 1,710 | ||||||||||||
Tax effect of direct response costs - cyberattack | (80) | (403) | ||||||||||||
Adjusted net earnings attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs | $6,329 | $18,451 | ||||||||||||
Net margin attributable to UnitedHealth Group common shareholders | 6.0 | % | 3.0 | % | ||||||||||
Adjusted net margin attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs | 6.3 | % | 6.2 | % |