Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

UnitedHealth Group

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions, except per share data)	September 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	21,085	$	16,921
Short-term investments	2,786		2,860
Accounts receivable, net	14,152		12,870
Other current receivables, net	14,080		12,534
Assets under management	4,304		4,076
Prepaid expenses and other current assets	5,203		4,457
Total current assets	61,610		53,718
Long-term investments	44,777		41,242
Property, equipment and capitalized software, net	8,730		8,626
Goodwill	75,435		71,337
Other intangible assets, net	10,436		10,856
Other assets	12,057		11,510
Total assets	$	213,045	$	197,289
Liabilities, redeemable noncontrolling interests and equity
Current liabilities:
Medical costs payable	$	25,918	$	21,872
Accounts payable and accrued liabilities	24,292		22,495
Short-term borrowings and current maturities of long-term debt	3,620		4,819
Unearned revenues	2,556		2,842
Other current liabilities	23,189		20,392
Total current liabilities	79,575		72,420
Long-term debt, less current maturities	43,345		38,648
Deferred income taxes	3,649		3,367
Other liabilities	11,844		12,315
Total liabilities	138,413		126,750
Commitments and contingencies (Note 7)
Redeemable noncontrolling interests	1,373		2,211
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; 942 and 946 issued and outstanding	10		10
Additional paid-in capital	—		—
Retained earnings	75,124		69,295
Accumulated other comprehensive loss	(4,856)		(3,814)
Nonredeemable noncontrolling interests	2,981		2,837
Total equity	73,259		68,328
Total liabilities, redeemable noncontrolling interests and equity	$	213,045	$	197,289

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2021		2020		2021		2020
Revenues:
Premiums	$	56,967	$	50,863	$	168,686	$	150,897
Products	8,703		8,777		25,476		25,455
Services	6,164		5,124		18,181		14,265
Investment and other income	503		351		1,511		1,057
Total revenues	72,337		65,115		213,854		191,674
Operating costs:
Medical costs	47,302		41,636		138,752		117,314
Operating costs	10,725		10,174		31,307		30,190
Cost of products sold	7,802		7,935		23,034		23,123
Depreciation and amortization	796		719		2,332		2,159
Total operating costs	66,625		60,464		195,425		172,786
Earnings from operations	5,712		4,651		18,429		18,888
Interest expense	(422)		(395)		(1,229)		(1,262)
Earnings before income taxes	5,290		4,256		17,200		17,626
Provision for income taxes	(1,099)		(1,000)		(3,659)		(4,209)
Net earnings	4,191		3,256		13,541		13,417
Earnings attributable to noncontrolling interests	(105)		(84)		(327)		(226)
Net earnings attributable to UnitedHealth Group common shareholders	$	4,086	$	3,172	$	13,214	$	13,191
Earnings per share attributable to UnitedHealth Group common shareholders:
Basic	$	4.33	$	3.34	$	14.00	$	13.90
Diluted	$	4.28	$	3.30	$	13.82	$	13.73
Basic weighted-average number of common shares outstanding	943		950		944		949
Dilutive effect of common share equivalents	12		12		12		12
Diluted weighted-average number of common shares outstanding	955		962		956		961
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents	1		6		2		9

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Net earnings	$	4,191	$	3,256	$	13,541	$	13,417
Other comprehensive (loss) income:
Gross unrealized (losses) gains on investment securities during the period	(192)		148		(705)		919
Income tax effect	59		(37)		175		(214)
Total unrealized (losses) gains, net of tax	(133)		111		(530)		705
Gross reclassification adjustment for net realized gains included in net earnings	(20)		(21)		(36)		(50)
Income tax effect	4		5		8		12
Total reclassification adjustment, net of tax	(16)		(16)		(28)		(38)
Total foreign currency translation losses	(621)		(39)		(484)		(1,583)
Other comprehensive (loss) income	(770)		56		(1,042)		(916)
Comprehensive income	3,421		3,312		12,499		12,501
Comprehensive income attributable to noncontrolling interests	(105)		(84)		(327)		(226)
Comprehensive income attributable to UnitedHealth Group common shareholders	$	3,316	$	3,228	$	12,172	$	12,275

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)				Nonredeemable Noncontrolling Interests		Total Equity
Three months ended September 30, (in millions)	Shares	Amount				Net Unrealized Gains (Losses) on Investments		Foreign Currency Translation Losses
Balance at June 30, 2021	943	$	10	$	—	$	73,090	$	927	$	(5,013)	$	3,008	$	72,022
Net earnings						4,086						86		4,172
Other comprehensive loss								(149)		(621)				(770)
Issuances of common stock, and related tax effects	1	—		291										291
Share-based compensation				159										159
Common share repurchases	(2)	—		(365)		(685)								(1,050)
Cash dividends paid on common shares ($1.45 per share)						(1,367)								(1,367)
Redeemable noncontrolling interests fair value and other adjustments				(85)										(85)
Acquisition and other adjustments of nonredeemable noncontrolling interests												(26)		(26)
Distribution to nonredeemable noncontrolling interests												(87)		(87)
Balance at September 30, 2021	942	$	10	$	—	$	75,124	$	778	$	(5,634)	$	2,981	$	73,259

Balance at June 30, 2020	950	$	10	$	388	$	67,776	$	1,161	$	(5,711)	$	2,891	$	66,515
Net earnings						3,172						62		3,234
Other comprehensive income (loss)								95		(39)				56
Issuances of common stock, and related tax effects	2	—		321										321
Share-based compensation				131										131
Common share repurchases	(3)	—		(805)		(45)								(850)
Cash dividends paid on common shares ($1.25 per share)						(1,188)								(1,188)
Redeemable noncontrolling interests fair value and other adjustments				(35)										(35)
Acquisition and other adjustments of nonredeemable noncontrolling interests												(8)		(8)
Distribution to nonredeemable noncontrolling interests												(72)		(72)
Balance at September 30, 2020	949	$	10	$	—	$	69,715	$	1,256	$	(5,750)	$	2,873	$	68,104

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)				Nonredeemable Noncontrolling Interests		Total Equity
Nine months ended September 30, (in millions)	Shares	Amount				Net Unrealized Gains (Losses) on Investments		Foreign Currency Translation Losses
Balance at January 1, 2021	946	$	10	$	—	$	69,295	$	1,336	$	(5,150)	$	2,837	$	68,328
Net earnings						13,214						254		13,468
Other comprehensive loss								(558)		(484)				(1,042)
Issuances of common stock, and related tax effects	6	—		839										839
Share-based compensation				559										559
Common share repurchases	(10)	—		(586)		(3,364)								(3,950)
Cash dividends paid on common shares ($4.15 per share)						(3,915)								(3,915)
Redeemable noncontrolling interests fair value and other adjustments				(812)		(106)								(918)
Acquisition and other adjustments of nonredeemable noncontrolling interests												125		125
Distribution to nonredeemable noncontrolling interests												(235)		(235)
Balance at September 30, 2021	942	$	10	$	—	$	75,124	$	778	$	(5,634)	$	2,981	$	73,259

Balance at January 1, 2020	948	$	9	$	7	$	61,178	$	589	$	(4,167)	$	2,820	$	60,436
Adjustment to Adopt ASU 2016-13						(28)								(28)
Net earnings						13,191						159		13,350
Other comprehensive income (loss)								667		(1,583)				(916)
Issuances of common stock, and related tax effects	10	1		928										929
Share-based compensation				509										509
Common share repurchases	(9)	—		(1,315)		(1,226)								(2,541)
Cash dividends paid on common shares ($3.58 per share)						(3,400)								(3,400)
Redeemable noncontrolling interests fair value and other adjustments				(129)										(129)
Acquisitions and other adjustments of nonredeemable noncontrolling interests												42		42
Distribution to nonredeemable noncontrolling interests												(148)		(148)
Balance at September 30, 2020	949	$	10	$	—	$	69,715	$	1,256	$	(5,750)	$	2,873	$	68,104

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended September 30,
(in millions)	2021		2020
Operating activities
Net earnings	$	13,541	$	13,417
Noncash items:
Depreciation and amortization	2,332		2,159
Deferred income taxes	373		119
Share-based compensation	591		527
Other, net	(195)		48
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:
Accounts receivable	(847)		(194)
Other assets	(1,435)		(2,697)
Medical costs payable	3,925		(615)
Accounts payable and other liabilities	1,171		3,441
Unearned revenues	(331)		(132)
Cash flows from operating activities	19,125		16,073
Investing activities
Purchases of investments	(12,827)		(11,570)
Sales of investments	2,569		4,887
Maturities of investments	6,556		5,297
Cash paid for acquisitions, net of cash assumed	(4,727)		(4,326)
Purchases of property, equipment and capitalized software	(1,759)		(1,477)
Other, net	(900)		(165)
Cash flows used for investing activities	(11,088)		(7,354)
Financing activities
Common share repurchases	(3,950)		(2,541)
Cash dividends paid	(3,915)		(3,400)
Proceeds from common stock issuances	1,077		1,206
Repayments of long-term debt	(1,900)		(1,500)
Repayments of short-term borrowings, net	(1,301)		(423)
Proceeds from issuance of long-term debt	6,934		4,864
Customer funds administered	1,402		249
Purchases of redeemable noncontrolling interests	(1,338)		—
Other, net	(837)		(449)
Cash flows used for financing activities	(3,828)		(1,994)
Effect of exchange rate changes on cash and cash equivalents	(45)		(160)
Increase in cash and cash equivalents	4,164		6,565
Cash and cash equivalents, beginning of period	16,921		10,985
Cash and cash equivalents, end of period	$	21,085	$	17,550

See Notes to the Condensed Consolidated Financial Statements

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 diversified health care company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two complementary business platforms — Optum and UnitedHealthcare — are driven by this unified mission and vision to improve health care access, affordability, experiences and outcomes for the individuals and organizations we are 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” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the SEC (2020 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.

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
September 30, 2021
Debt securities - available-for-sale:
U.S. government and agency obligations	$	3,625	$	70	$	(23)	$	3,672
State and municipal obligations	7,093		341		(15)		7,419
Corporate obligations	21,987		547		(84)		22,450
U.S. agency mortgage-backed securities	6,281		156		(34)		6,403
Non-U.S. agency mortgage-backed securities	2,763		63		(13)		2,813
Total debt securities - available-for-sale	41,749		1,177		(169)		42,757
Debt securities - held-to-maturity:
U.S. government and agency obligations	506		3		(1)		508
State and municipal obligations	30		2		—		32
Corporate obligations	80		—		—		80
Total debt securities - held-to-maturity	616		5		(1)		620
Total debt securities	$	42,365	$	1,182	$	(170)	$	43,377
December 31, 2020
Debt securities - available-for-sale:
U.S. government and agency obligations	$	3,335	$	133	$	(3)	$	3,465
State and municipal obligations	6,893		435		—		7,328
Corporate obligations	18,886		863		(12)		19,737
U.S. agency mortgage-backed securities	6,849		245		(3)		7,091
Non-U.S. agency mortgage-backed securities	2,116		95		(4)		2,207
Total debt securities - available-for-sale	38,079		1,771		(22)		39,828
Debt securities - held-to-maturity:
U.S. government and agency obligations	420		6		—		426
State and municipal obligations	31		2		—		33
Corporate obligations	187		1		—		188
Total debt securities - held-to-maturity	638		9		—		647
Total debt securities	$	38,717	$	1,780	$	(22)	$	40,475

The Company held $2.9 billion and $2.3 billion of equity securities as of September 30, 2021 and December 31, 2020, respectively. The Company’s investments in equity securities primarily consist of employee savings plan related investments, shares of Brazilian real denominated fixed-income funds with readily determinable fair values and other venture investments. Additionally, the Company’s investments included $1.3 billion of equity method investments in operating businesses in the health care sector as of September 30, 2021 and December 31, 2020. The allowance for credit losses on held-to-maturity securities at September 30, 2021 and December 31, 2020 was not material.

The amortized cost and fair value of debt securities as of September 30, 2021, 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	$	2,871	$	2,886	$	234	$	235
Due after one year through five years	13,492		13,826		333		334
Due after five years through ten years	12,062		12,406		26		27
Due after ten years	4,280		4,423		23		24
U.S. agency mortgage-backed securities	6,281		6,403		—		—
Non-U.S. agency mortgage-backed securities	2,763		2,813		—		—
Total debt securities	$	41,749	$	42,757	$	616	$	620

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
September 30, 2021
Debt securities - available-for-sale:
U.S. government and agency obligations	$	1,499	$	(16)	$	117	$	(7)	$	1,616	$	(23)
State and municipal obligations	1,226		(15)		—		—		1,226		(15)
Corporate obligations	6,471		(75)		326		(9)		6,797		(84)
U.S. agency mortgage-backed securities	2,537		(34)		—		—		2,537		(34)
Non-U.S. agency mortgage-backed securities	830		(9)		92		(4)		922		(13)
Total debt securities - available-for-sale	$	12,563	$	(149)	$	535	$	(20)	$	13,098	$	(169)
December 31, 2020
Debt securities - available-for-sale:
U.S. government and agency obligations	$	346	$	(3)	$	—	$	—	$	346	$	(3)
Corporate obligations	1,273		(9)		456		(3)		1,729		(12)
U.S. agency mortgage-backed securities	601		(3)		—		—		601		(3)
Non-U.S. agency mortgage-backed securities	195		(1)		93		(3)		288		(4)
Total debt securities - available-for-sale	$	2,415	$	(16)	$	549	$	(6)	$	2,964	$	(22)

The Company’s unrealized losses from debt securities as of September 30, 2021 were generated from approximately 9,000 positions out of a total of 40,000 positions. The Company believes that it will collect the timely principal and interest due on its debt securities that have an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities that impacted our 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 September 30, 2021, 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 September 30, 2021 and December 31, 2020 was not material.

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 in Part II, Item 8, “Financial Statements” in the 2020 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
September 30, 2021
Cash and cash equivalents	$	20,944		$	141		$	—		$	21,085
Debt securities - available-for-sale:
U.S. government and agency obligations	3,446			226			—			3,672
State and municipal obligations	—			7,419			—			7,419
Corporate obligations	62			22,165			223			22,450
U.S. agency mortgage-backed securities	—			6,403			—			6,403
Non-U.S. agency mortgage-backed securities	—			2,813			—			2,813
Total debt securities - available-for-sale	3,508			39,026			223			42,757
Equity securities	1,972			22			64			2,058
Assets under management	1,930			2,271			103			4,304
Total assets at fair value	$	28,354		$	41,460		$	390		$	70,204
Percentage of total assets at fair value	40		%	59		%	1		%	100		%
December 31, 2020
Cash and cash equivalents	$	16,841		$	80		$	—		$	16,921
Debt securities - available-for-sale:
U.S. government and agency obligations	3,241			224			—			3,465
State and municipal obligations	—			7,328			—			7,328
Corporate obligations	25			19,424			288			19,737
U.S. agency mortgage-backed securities	—			7,091			—			7,091
Non-U.S. agency mortgage-backed securities	—			2,207			—			2,207
Total debt securities - available-for-sale	3,266			36,274			288			39,828
Equity securities	1,795			33			—			1,828
Assets under management	1,774			2,250			52			4,076
Total assets at fair value	$	23,676		$	38,637		$	340		$	62,653
Percentage of total assets at fair value	38		%	61		%	1		%	100		%

There were no transfers in or out of Level 3 financial assets or liabilities during the nine months ended September 30, 2021 or 2020.

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
September 30, 2021
Debt securities - held-to-maturity	$	525	$	88	$	7	$	620	$	616
Long-term debt and other financing obligations	$	—	$	53,425	$	—	$	53,425	$	46,965
December 31, 2020
Debt securities - held-to-maturity	$	466	$	108	$	73	$	647	$	638
Long-term debt and other financing obligations	$	—	$	51,254	$	—	$	51,254	$	42,171

Nonfinancial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when the Company records an impairment. There were no significant fair value adjustments for these assets and liabilities recorded during either the nine months ended September 30, 2021 or 2020.

4. Medical Costs Payable

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


(in millions)	2021		2020
Medical costs payable, beginning of period	$	21,872	$	21,690
Acquisitions	88		186
Reported medical costs:
Current year	140,052		118,114
Prior years	(1,300)		(800)
Total reported medical costs	138,752		117,314
Medical payments:
Payments for current year	(116,135)		(98,548)
Payments for prior years	(18,659)		(19,475)
Total medical payments	(134,794)		(118,023)
Medical costs payable, end of period	$	25,918	$	21,167

For the nine months ended September 30, 2021 and September 30, 2020, prior years medical cost reserve development was primarily driven by lower than expected health system utilization. Medical costs payable included reserves for claims incurred by insured customers but not yet reported to the Company of $17.6 billion and $14.8 billion at September 30, 2021 and December 31, 2020, respectively.

5. Short-Term Borrowings and Long-Term Debt

In May 2021, the Company issued $7.0 billion of senior unsecured notes consisting of the following:


(in millions, except percentages)	Par Value
0.550% notes due May 2024	$	1,000
1.150% notes due May 2026	1,000
2.300% notes due May 2031	1,500
3.050% notes due May 2041	1,500
3.250% notes due May 2051	2,000

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 in Part II, Item 8, “Financial Statements” in the 2020 10-K.

6. Dividends

In June 2021, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual rate of $5.80 compared to $5.00 per share, which the Company had paid since June 2020. Declaration and payment of future quarterly dividends is at the discretion of the Board and may be adjusted as business needs or market conditions change.

The following table provides details of the Company’s 2021 dividend payments:


Payment Date	Amount per Share		Total Amount Paid
			(in millions)
March 23	$	1.25	$	1,181
June 29	1.45		1,367
September 21	1.45		1,367

7. Commitments and Contingencies

Pending Acquisitions

The Company has entered into agreements to purchase companies in the health care sector, most notably Change Healthcare (NASDAQ: CHNG), subject to regulatory approvals and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, is approximately $9 billion.

Legal Matters

Because of the nature of its businesses, 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 that a loss may be incurred.

Government Investigations, Audits and Reviews

The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by the Centers for Medicare and Medicaid Services (CMS), state insurance and health and welfare departments, state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office of Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the U.S. Department of Justice (DOJ), the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Defense Contract Audit Agency and other governmental authorities. Similarly, our international businesses are also subject to investigations, audits and reviews by applicable foreign governments, including South American and other non-U.S. governmental authorities. Certain of the Company’s businesses have been reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements under the Medicare risk-adjustment model. CMS has selected certain of the Company’s local plans for risk adjustment data validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers and such audits may result in retrospective adjustments to payments made to the Company’s health plans.

On February 14, 2017, the DOJ announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges that the Company made improper risk adjustment submissions and violated the False Claims Act. On February 12, 2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, DOJ moved to dismiss the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the court denied the government’s motion for partial summary judgment and dismissed the Company’s counterclaims without prejudice. The Company cannot reasonably estimate the outcome that may result from this matter given its procedural status.

8. Segment Financial Information

The Company’s four reportable segments are UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. For more information on the Company’s segments see Part I, Item I, “Business” and Note 14 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements” in the 2020 10-K.

The following tables present reportable segment financial information:


			Optum
(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated
Three Months Ended September 30, 2021
Revenues - unaffiliated customers:
Premiums	$	53,345	$	3,622	$	—	$	—	$	—	$	3,622	$	—	$	56,967
Products	—		8		37		8,658		—		8,703		—		8,703
Services	2,407		2,515		970		272		—		3,757		—		6,164
Total revenues - unaffiliated customers	55,752		6,145		1,007		8,930		—		16,082		—		71,834
Total revenues - affiliated customers	—		7,441		2,037		14,400		(503)		23,375		(23,375)		—
Investment and other income	175		226		95		7		—		328		—		503
Total revenues	$	55,927	$	13,812	$	3,139	$	23,337	$	(503)	$	39,785	$	(23,375)	$	72,337
Earnings from operations	$	2,651	$	1,143	$	906	$	1,012	$	—	$	3,061	$	—	$	5,712
Interest expense	—		—		—		—		—		—		(422)		(422)
Earnings before income taxes	$	2,651	$	1,143	$	906	$	1,012	$	—	$	3,061	$	(422)	$	5,290
Three Months Ended September 30, 2020
Revenues - unaffiliated customers:
Premiums	$	48,121	$	2,742	$	—	$	—	$	—	$	2,742	$	—	$	50,863
Products	—		10		34		8,733		—		8,777		—		8,777
Services	2,075		1,834		974		241		—		3,049		—		5,124
Total revenues - unaffiliated customers	50,196		4,586		1,008		8,974		—		14,568		—		64,764
Total revenues - affiliated customers	—		5,748		1,755		13,102		(424)		20,181		(20,181)		—
Investment and other income	177		165		4		5		—		174		—		351
Total revenues	$	50,373	$	10,499	$	2,767	$	22,081	$	(424)	$	34,923	$	(20,181)	$	65,115
Earnings from operations	$	2,068	$	835	$	785	$	963	$	—	$	2,583	$	—	$	4,651
Interest expense	—		—		—		—		—		—		(395)		(395)
Earnings before income taxes	$	2,068	$	835	$	785	$	963	$	—	$	2,583	$	(395)	$	4,256


			Optum
(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated
Nine Months Ended September 30, 2021
Revenues - unaffiliated customers:
Premiums	$	158,761	$	9,925	$	—	$	—	$	—	$	9,925	$	—	$	168,686
Products	—		25		107		25,344		—		25,476		—		25,476
Services	7,197		7,312		2,861		811		—		10,984		—		18,181
Total revenues - unaffiliated customers	165,958		17,262		2,968		26,155		—		46,385		—		212,343
Total revenues - affiliated customers	—		21,614		5,779		41,196		(1,456)		67,133		(67,133)		—
Investment and other income	557		639		201		114		—		954		—		1,511
Total revenues	$	166,515	$	39,515	$	8,948	$	67,465	$	(1,456)	$	114,472	$	(67,133)	$	213,854
Earnings from operations	$	9,854	$	3,233	$	2,447	$	2,895	$	—	$	8,575	$	—	$	18,429
Interest expense	—		—		—		—		—		—		(1,229)		(1,229)
Earnings before income taxes	$	9,854	$	3,233	$	2,447	$	2,895	$	—	$	8,575	$	(1,229)	$	17,200
Nine Months Ended September 30, 2020
Revenues - unaffiliated customers:
Premiums	$	143,753	$	7,144	$	—	$	—	$	—	$	7,144	$	—	$	150,897
Products	—		26		90		25,339		—		25,455		—		25,455
Services	6,248		4,607		2,629		781		—		8,017		—		14,265
Total revenues - unaffiliated customers	150,001		11,777		2,719		26,120		—		40,616		—		190,617
Total revenues - affiliated customers	—		16,623		5,140		38,843		(1,275)		59,331		(59,331)		—
Investment and other income	547		430		34		46		—		510		—		1,057
Total revenues	$	150,548	$	28,830	$	7,893	$	65,009	$	(1,275)	$	100,457	$	(59,331)	$	191,674
Earnings from operations	$	11,963	$	2,388	$	1,882	$	2,655	$	—	$	6,925	$	—	$	18,888
Interest expense	—		—		—		—		—		—		(1,262)		(1,262)
Earnings before income taxes	$	11,963	$	2,388	$	1,882	$	2,655	$	—	$	6,925	$	(1,262)	$	17,626

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