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)	June 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	24,612	$	21,375
Short-term investments	3,352		2,532
Accounts receivable, net	18,718		14,216
Other current receivables, net	12,439		13,866
Assets under management	4,017		4,449
Prepaid expenses and other current assets	5,218		5,320
Total current assets	68,356		61,758
Long-term investments	42,427		43,114
Property, equipment and capitalized software, net	9,421		8,969
Goodwill	84,159		75,795
Other intangible assets, net	11,285		10,044
Other assets	14,524		12,526
Total assets	$	230,172	$	212,206
Liabilities, redeemable noncontrolling interests and equity
Current liabilities:
Medical costs payable	$	28,978	$	24,483
Accounts payable and accrued liabilities	25,145		24,643
Short-term borrowings and current maturities of long-term debt	5,592		3,620
Unearned revenues	2,212		2,571
Other current liabilities	26,771		22,975
Total current liabilities	88,698		78,292
Long-term debt, less current maturities	45,799		42,383
Deferred income taxes	2,581		3,265
Other liabilities	11,967		11,787
Total liabilities	149,045		135,727
Commitments and contingencies (Note 7)
Redeemable noncontrolling interests	4,922		1,434
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; 935 and 941 issued and outstanding	10		10
Retained earnings	80,540		77,134
Accumulated other comprehensive loss	(7,730)		(5,384)
Nonredeemable noncontrolling interests	3,385		3,285
Total equity	76,205		75,045
Total liabilities, redeemable noncontrolling interests and equity	$	230,172	$	212,206

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	2022		2021		2022		2021
Revenues:
Premiums	$	63,896	$	56,233	$	127,966	$	111,719
Products	9,496		8,433		18,836		16,773
Services	6,645		6,099		13,017		12,017
Investment and other income	295		556		662		1,008
Total revenues	80,332		71,321		160,481		141,517
Operating costs:
Medical costs	52,093		46,546		104,616		91,450
Operating costs	11,709		10,359		23,110		20,582
Cost of products sold	8,596		7,660		17,083		15,232
Depreciation and amortization	802		778		1,590		1,536
Total operating costs	73,200		65,343		146,399		128,800
Earnings from operations	7,132		5,978		14,082		12,717
Interest expense	(467)		(410)		(900)		(807)
Earnings before income taxes	6,665		5,568		13,182		11,910
Provision for income taxes	(1,466)		(1,196)		(2,835)		(2,560)
Net earnings	5,199		4,372		10,347		9,350
Earnings attributable to noncontrolling interests	(129)		(106)		(250)		(222)
Net earnings attributable to UnitedHealth Group common shareholders	$	5,070	$	4,266	$	10,097	$	9,128
Earnings per share attributable to UnitedHealth Group common shareholders:
Basic	$	5.41	$	4.52	$	10.75	$	9.66
Diluted	$	5.34	$	4.46	$	10.61	$	9.55
Basic weighted-average number of common shares outstanding	937		944		939		945
Dilutive effect of common share equivalents	13		12		13		11
Diluted weighted-average number of common shares outstanding	950		956		952		956
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents	3		1		3		2

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Net earnings	$	5,199	$	4,372	$	10,347	$	9,350
Other comprehensive (loss) income:
Gross unrealized (losses) gains on investment securities during the period	(1,331)		251		(3,354)		(513)
Income tax effect	304		(58)		769		116
Total unrealized (losses) gains, net of tax	(1,027)		193		(2,585)		(397)
Gross reclassification adjustment for net realized gains included in net earnings	(1)		(9)		(4)		(16)
Income tax effect	—		2		1		4
Total reclassification adjustment, net of tax	(1)		(7)		(3)		(12)
Total foreign currency translation (losses) gains	(676)		554		242		137
Other comprehensive (loss) income	(1,704)		740		(2,346)		(272)
Comprehensive income	3,495		5,112		8,001		9,078
Comprehensive income attributable to noncontrolling interests	(129)		(106)		(250)		(222)
Comprehensive income attributable to UnitedHealth Group common shareholders	$	3,366	$	5,006	$	7,751	$	8,856

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 (Loss) Income				Nonredeemable Noncontrolling Interests		Total Equity
Three months ended June 30, (in millions)	Shares	Amount				Net Unrealized (Losses) Gains on Investments		Foreign Currency Translation (Losses) Gains
Balance at March 31, 2022	939	$	10	$	—	$	78,782	$	(1,137)	$	(4,889)	$	3,362	$	76,128
Net earnings						5,070						94		5,164
Other comprehensive loss								(1,028)		(676)				(1,704)
Issuances of common stock, and related tax effects	1	—		174										174
Share-based compensation				194										194
Common share repurchases	(5)	—		(733)		(1,767)								(2,500)
Cash dividends paid on common shares ($1.65 per share)						(1,545)								(1,545)
Redeemable noncontrolling interests fair value and other adjustments				365										365
Acquisition and other adjustments of nonredeemable noncontrolling interests												12		12
Distribution to nonredeemable noncontrolling interests												(83)		(83)
Balance at June 30, 2022	935	$	10	$	—	$	80,540	$	(2,165)	$	(5,565)	$	3,385	$	76,205

Balance at March 31, 2021	944	$	10	$	—	$	71,220	$	741	$	(5,567)	$	2,909	$	69,313
Net earnings						4,266						88		4,354
Other comprehensive income								186		554				740
Issuances of common stock, and related tax effects	2	—		292										292
Share-based compensation				158										158
Common share repurchases	(3)	—		(221)		(1,029)								(1,250)
Cash dividends paid on common shares ($1.45 per share)						(1,367)								(1,367)
Redeemable noncontrolling interests fair value and other adjustments				(229)										(229)
Acquisition and other adjustments of nonredeemable noncontrolling interests												85		85
Distribution to nonredeemable noncontrolling interests												(74)		(74)
Balance at June 30, 2021	943	$	10	$	—	$	73,090	$	927	$	(5,013)	$	3,008	$	72,022

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
Six months ended June 30, (in millions)	Shares	Amount				Net Unrealized Gains (Losses) on Investments		Foreign Currency Translation (Losses) Gains
Balance at January 1, 2022	941	$	10	$	—	$	77,134	$	423	$	(5,807)	$	3,285	$	75,045
Net earnings						10,097						182		10,279
Other comprehensive (loss) income								(2,588)		242				(2,346)
Issuances of common stock, and related tax effects	4	—		507										507
Share-based compensation				476										476
Common share repurchases	(10)	—		(1,217)		(3,783)								(5,000)
Cash dividends paid on common shares ($3.10 per share)						(2,908)								(2,908)
Redeemable noncontrolling interests fair value and other adjustments				234										234
Acquisition and other adjustments of nonredeemable noncontrolling interests												103		103
Distribution to nonredeemable noncontrolling interests												(185)		(185)
Balance at June 30, 2022	935	$	10	$	—	$	80,540	$	(2,165)	$	(5,565)	$	3,385	$	76,205

Balance at January 1, 2021	946	$	10	$	—	$	69,295	$	1,336	$	(5,150)	$	2,837	$	68,328
Net earnings						9,128						168		9,296
Other comprehensive (loss) income								(409)		137				(272)
Issuances of common stock, and related tax effects	5	—		548										548
Share-based compensation				400										400
Common share repurchases	(8)	—		(221)		(2,679)								(2,900)
Cash dividends paid on common shares ($2.70 per share)						(2,548)								(2,548)
Redeemable noncontrolling interests fair value and other adjustments				(727)		(106)								(833)
Acquisitions and other adjustments of nonredeemable noncontrolling interests												151		151
Distribution to nonredeemable noncontrolling interests												(148)		(148)
Balance at June 30, 2021	943	$	10	$	—	$	73,090	$	927	$	(5,013)	$	3,008	$	72,022

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
(in millions)	2022		2021
Operating activities
Net earnings	$	10,347	$	9,350
Noncash items:
Depreciation and amortization	1,590		1,536
Deferred income taxes	(15)		327
Share-based compensation	504		426
Other, net	215		(214)
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:
Accounts receivable	(4,204)		(1,218)
Other assets	(643)		(1,523)
Medical costs payable	4,029		3,086
Accounts payable and other liabilities	807		298
Unearned revenues	(440)		(523)
Cash flows from operating activities	12,190		11,545
Investing activities
Purchases of investments	(8,903)		(8,847)
Sales of investments	2,348		1,408
Maturities of investments	3,189		4,650
Cash paid for acquisitions, net of cash assumed	(7,150)		(4,642)
Purchases of property, equipment and capitalized software	(1,212)		(1,130)
Other, net	(532)		(648)
Cash flows used for investing activities	(12,260)		(9,209)
Financing activities
Common share repurchases	(5,000)		(2,900)
Cash dividends paid	(2,908)		(2,548)
Proceeds from common stock issuances	756		764
Repayments of long-term debt	(1,100)		(1,900)
Proceeds from (repayments of) short-term borrowings, net	1,340		(176)
Proceeds from issuance of long-term debt	5,922		6,934
Customer funds administered	5,786		2,395
Purchases of redeemable noncontrolling interests	(97)		(1,338)
Other, net	(1,449)		(662)
Cash flows from financing activities	3,250		569
Effect of exchange rate changes on cash and cash equivalents	57		6
Increase in cash and cash equivalents	3,237		2,911
Cash and cash equivalents, beginning of period	21,375		16,921
Cash and cash equivalents, end of period	$	24,612	$	19,832

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 health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two distinct, yet complementary business platforms — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations the Company is privileged to serve.

The Company has prepared the Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. The year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited Consolidated Financial Statements. Therefore, these Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and the Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC (2021 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
June 30, 2022
Debt securities - available-for-sale:
U.S. government and agency obligations	$	3,808	$	1	$	(209)	$	3,600
State and municipal obligations	7,725		25		(381)		7,369
Corporate obligations	22,080		5		(1,515)		20,570
U.S. agency mortgage-backed securities	6,275		2		(537)		5,740
Non-U.S. agency mortgage-backed securities	2,926		—		(201)		2,725
Total debt securities - available-for-sale	42,814		33		(2,843)		40,004
Debt securities - held-to-maturity:
U.S. government and agency obligations	544		—		(11)		533
State and municipal obligations	29		—		(2)		27
Corporate obligations	141		—		—		141
Total debt securities - held-to-maturity	714		—		(13)		701
Total debt securities	$	43,528	$	33	$	(2,856)	$	40,705
December 31, 2021
Debt securities - available-for-sale:
U.S. government and agency obligations	$	3,206	$	23	$	(31)	$	3,198
State and municipal obligations	6,829		297		(20)		7,106
Corporate obligations	20,947		372		(145)		21,174
U.S. agency mortgage-backed securities	5,868		88		(55)		5,901
Non-U.S. agency mortgage-backed securities	2,819		42		(23)		2,838
Total debt securities - available-for-sale	39,669		822		(274)		40,217
Debt securities - held-to-maturity:
U.S. government and agency obligations	511		2		(2)		511
State and municipal obligations	30		2		—		32
Corporate obligations	100		—		—		100
Total debt securities - held-to-maturity	641		4		(2)		643
Total debt securities	$	40,310	$	826	$	(276)	$	40,860

The Company held $3.4 billion and $3.5 billion of equity securities as of June 30, 2022 and December 31, 2021, respectively. The Company’s investments in equity securities primarily consist of employee savings plan related investments, other venture investments and shares of Brazilian real denominated fixed-income funds with readily determinable fair values. Additionally, the Company’s investments included $1.7 billion and $1.3 billion of equity method investments in operating businesses in the health care sector as of June 30, 2022 and December 31, 2021, respectively. The allowance for credit losses on held-to-maturity securities at June 30, 2022 and December 31, 2021 was not material.

The amortized cost and fair value of debt securities as of June 30, 2022, by contractual maturity, were as follows:


	Available-for-Sale				Held-to-Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,439	$	3,422	$	385	$	381
Due after one year through five years	13,237		12,672		295		288
Due after five years through ten years	12,332		11,213		14		13
Due after ten years	4,605		4,232		20		19
U.S. agency mortgage-backed securities	6,275		5,740		—		—
Non-U.S. agency mortgage-backed securities	2,926		2,725		—		—
Total debt securities	$	42,814	$	40,004	$	714	$	701

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
June 30, 2022
Debt securities - available-for-sale:
U.S. government and agency obligations	$	2,921	$	(152)	$	474	$	(57)	$	3,395	$	(209)
State and municipal obligations	4,807		(355)		209		(26)		5,016		(381)
Corporate obligations	16,894		(1,200)		2,261		(315)		19,155		(1,515)
U.S. agency mortgage-backed securities	4,323		(356)		1,201		(181)		5,524		(537)
Non-U.S. agency mortgage-backed securities	2,354		(151)		354		(50)		2,708		(201)
Total debt securities - available-for-sale	$	31,299	$	(2,214)	$	4,499	$	(629)	$	35,798	$	(2,843)
December 31, 2021
Debt securities - available-for-sale:
U.S. government and agency obligations	$	1,976	$	(18)	$	249	$	(13)	$	2,225	$	(31)
State and municipal obligations	1,386		(19)		31		(1)		1,417		(20)
Corporate obligations	9,357		(130)		376		(15)		9,733		(145)
U.S. agency mortgage-backed securities	3,078		(52)		116		(3)		3,194		(55)
Non-U.S. agency mortgage-backed securities	1,321		(18)		114		(5)		1,435		(23)
Total debt securities - available-for-sale	$	17,118	$	(237)	$	886	$	(37)	$	18,004	$	(274)

The Company’s unrealized losses from debt securities as of June 30, 2022 were generated from approximately 33,000 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 caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities that impacted the Company’s assessment on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the expected cash flows, the underlying credit quality and credit ratings of the issuers noting no significant credit deterioration since purchase. As of June 30, 2022, 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 June 30, 2022 and December 31, 2021 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 included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2021 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
June 30, 2022
Cash and cash equivalents	$	24,546		$	66		$	—		$	24,612
Debt securities - available-for-sale:
U.S. government and agency obligations	3,432			168			—			3,600
State and municipal obligations	—			7,369			—			7,369
Corporate obligations	35			20,342			193			20,570
U.S. agency mortgage-backed securities	—			5,740			—			5,740
Non-U.S. agency mortgage-backed securities	—			2,725			—			2,725
Total debt securities - available-for-sale	3,467			36,344			193			40,004
Equity securities	1,894			18			68			1,980
Assets under management	1,655			2,268			94			4,017
Total assets at fair value	$	31,562		$	38,696		$	355		$	70,613
Percentage of total assets at fair value	45		%	54		%	1		%	100		%
December 31, 2021
Cash and cash equivalents	$	21,359		$	16		$	—		$	21,375
Debt securities - available-for-sale:
U.S. government and agency obligations	3,017			181			—			3,198
State and municipal obligations	—			7,106			—			7,106
Corporate obligations	40			20,916			218			21,174
U.S. agency mortgage-backed securities	—			5,901			—			5,901
Non-U.S. agency mortgage-backed securities	—			2,838			—			2,838
Total debt securities - available-for-sale	3,057			36,942			218			40,217
Equity securities	2,090			23			64			2,177
Assets under management	1,972			2,376			101			4,449
Total assets at fair value	$	28,478		$	39,357		$	383		$	68,218
Percentage of total assets at fair value	42		%	57		%	1		%	100		%

There were no transfers in or out of Level 3 financial assets or liabilities during the six months ended June 30, 2022 or 2021.

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
June 30, 2022
Debt securities - held-to-maturity	$	597	$	104	$	—	$	701	$	714
Long-term debt and other financing obligations	$	—	$	48,549	$	—	$	48,549	$	50,041
December 31, 2021
Debt securities - held-to-maturity	$	534	$	102	$	7	$	643	$	641
Long-term debt and other financing obligations	$	—	$	52,583	$	—	$	52,583	$	46,003

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 six months ended June 30, 2022 or 2021.

4. Medical Costs Payable

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


(in millions)	2022		2021
Medical costs payable, beginning of period	$	24,483	$	21,872
Acquisitions	171		46
Reported medical costs:
Current year	104,936		92,570
Prior years	(320)		(1,120)
Total reported medical costs	104,616		91,450
Medical payments:
Payments for current year	(78,937)		(69,808)
Payments for prior years	(21,355)		(18,429)
Total medical payments	(100,292)		(88,237)
Medical costs payable, end of period	$	28,978	$	25,131

For the six months ended June 30, 2022, prior years’ medical cost reserve development included no individual factors that were significant. For the six months ended June 30, 2021, prior years’ medical cost reserve development was primarily driven by lower than expected health system utilization and the uncertainty of care patterns due to the disruption of the health care system caused by COVID-19. Medical costs payable included reserves for claims incurred by insured customers but not yet reported to the Company of $20.3 billion and $17.1 billion at June 30, 2022 and December 31, 2021, respectively.

5. Short-Term Borrowings and Long-Term Debt

In May 2022, the Company issued $6.0 billion of senior unsecured notes consisting of the following:


(in millions, except percentages)	Par Value
3.700% notes due May 2027	$	600
4.000% notes due May 2029	900
4.200% notes due May 2032	1,500
4.750% notes due May 2052	2,000
4.950% notes due May 2062	1,000

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 included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2021 10-K.

6. Dividends

In June 2022, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual rate of $6.60 compared to $5.80 per share, which the Company had paid since June 2021. Declaration and payment of future quarterly dividends is at the discretion of the Board of Directors and may be adjusted as business needs or market conditions change.

The following table provides details of the Company’s 2022 dividend payments:


Payment Date	Amount per Share		Total Amount Paid
			(in millions)
March 22	$	1.45	$	1,363
June 28	1.65		1,545

7. Commitments and Contingencies

Pending Business Combinations

As of June 30, 2022, the Company has entered into agreements to acquire companies in the health care sector, most notably Change Healthcare (NASDAQ: CHNG) and LHC Group, Inc (NASDAQ: LHCG), subject to regulatory approval and other customary closing conditions. The total anticipated capital required for these business combinations, excluding associated disposition proceeds and the payoff of acquired indebtedness, is approximately $14 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 for Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the DOJ, the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau (CFPB), 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 Medicare 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, the 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. Business Combinations

During the six months ended June 30, 2022, the Company completed several business combinations for total consideration of $8.1 billion.

Acquired assets (liabilities) at acquisition date were:


(in millions)
Cash and cash equivalents	$	457
Accounts receivable and other current assets	585
Property, equipment and other long-term assets	1,494
Intangible assets	1,810
Total identifiable assets acquired	4,346
Medical costs payable	(171)
Accounts payable and other current liabilities	(590)
Other long-term liabilities	(605)
Total identifiable liabilities acquired	(1,366)
Total net identifiable assets	2,980
Goodwill	8,309
Redeemable noncontrolling interests	(3,101)
Nonredeemable noncontrolling interests	(103)
Net assets acquired	$	8,085

The majority of goodwill is not deductible for income tax purposes. The preliminary purchase price allocations for the various business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent liabilities, are finalized.

The acquisition date fair values and weighted-average useful lives assigned to finite-lived intangible assets were:


(in millions, except years)	Fair Value		Weighted-Average Useful Life
Customer-related	$	915	9 years
Trademarks and technology	800		9 years
Other	80		11 years
Total acquired finite-lived intangible assets	$	1,795	9 years

The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results and the results of the corresponding operating segment as of the date of acquisition. Through June 30, 2022, acquired entities impact on revenues and net earnings was not material.

Unaudited pro forma revenues and net earnings for the six months ended June 30, 2022 and 2021 as if the business combinations had occurred on January 1, 2021 were immaterial for both periods.

9. Segment Financial Information

The Company’s four reportable segments are UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. For more information on the Company’s segments, see Part I, Item I, “Business” and Note 13 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2021 10-K. Total assets at Optum Health and Optum Rx increased to $67.9 billion and $46.2 billion as of June 30, 2022 compared to $60.5 billion and $40.2 billion as of December 31, 2021, respectively. The increase in total assets at Optum Health and Optum Rx was primarily due to goodwill from business combinations of $4.5 billion and $3.8 billion, respectively.

On January 1, 2022, the Company realigned its operating segments to combine UnitedHealthcare Global and UnitedHealthcare Employer & Individual. The realignment had no impact on the Company’s reportable segments.

The following tables present reportable segment financial information:


			Optum
(in millions)	UnitedHealthcare		Optum Health		Optum Insight		Optum Rx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated
Three Months Ended June 30, 2022
Revenues - unaffiliated customers:
Premiums	$	59,368	$	4,528	$	—	$	—	$	—	$	4,528	$	—	$	63,896
Products	—		6		58		9,432		—		9,496		—		9,496
Services	2,542		2,740		1,034		329		—		4,103		—		6,645
Total revenues - unaffiliated customers	61,910		7,274		1,092		9,761		—		18,127		—		80,037
Total revenues - affiliated customers	—		10,224		2,181		15,038		(588)		26,855		(26,855)		—
Investment and other income	195		85		9		6		—		100		—		295
Total revenues	$	62,105	$	17,583	$	3,282	$	24,805	$	(588)	$	45,082	$	(26,855)	$	80,332
Earnings from operations	$	3,850	$	1,399	$	839	$	1,044	$	—	$	3,282	$	—	$	7,132
Interest expense	—		—		—		—		—		—		(467)		(467)
Earnings before income taxes	$	3,850	$	1,399	$	839	$	1,044	$	—	$	3,282	$	(467)	$	6,665
Three Months Ended June 30, 2021
Revenues - unaffiliated customers:
Premiums	$	52,858	$	3,375	$	—	$	—	$	—	$	3,375	$	—	$	56,233
Products	—		9		33		8,391		—		8,433		—		8,433
Services	2,440		2,461		930		268		—		3,659		—		6,099
Total revenues - unaffiliated customers	55,298		5,845		963		8,659		—		15,467		—		70,765
Total revenues - affiliated customers	—		7,221		1,921		13,792		(478)		22,456		(22,456)		—
Investment and other income	176		234		73		73		—		380		—		556
Total revenues	$	55,474	$	13,300	$	2,957	$	22,524	$	(478)	$	38,303	$	(22,456)	$	71,321
Earnings from operations	$	3,095	$	1,128	$	762	$	993	$	—	$	2,883	$	—	$	5,978
Interest expense	—		—		—		—		—		—		(410)		(410)
Earnings before income taxes	$	3,095	$	1,128	$	762	$	993	$	—	$	2,883	$	(410)	$	5,568


			Optum
(in millions)	UnitedHealthcare		Optum Health		Optum Insight		Optum Rx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated
Six Months Ended June 30, 2022
Revenues - unaffiliated customers:
Premiums	$	119,305	$	8,661	$	—	$	—	$	—	$	8,661	$	—	$	127,966
Products	—		12		98		18,726		—		18,836		—		18,836
Services	5,057		5,298		2,008		654		—		7,960		—		13,017
Total revenues - unaffiliated customers	124,362		13,971		2,106		19,380		—		35,457		—		159,819
Total revenues - affiliated customers	—		20,053		4,319		29,329		(1,141)		52,560		(52,560)		—
Investment and other income	338		241		76		7		—		324		—		662
Total revenues	$	124,700	$	34,265	$	6,501	$	48,716	$	(1,141)	$	88,341	$	(52,560)	$	160,481
Earnings from operations	$	7,648	$	2,765	$	1,686	$	1,983	$	—	$	6,434	$	—	$	14,082
Interest expense	—		—		—		—		—		—		(900)		(900)
Earnings before income taxes	$	7,648	$	2,765	$	1,686	$	1,983	$	—	$	6,434	$	(900)	$	13,182
Six Months Ended June 30, 2021
Revenues - unaffiliated customers:
Premiums	$	105,416	$	6,303	$	—	$	—	$	—	$	6,303	$	—	$	111,719
Products	—		17		70		16,686		—		16,773		—		16,773
Services	4,790		4,797		1,891		539		—		7,227		—		12,017
Total revenues - unaffiliated customers	110,206		11,117		1,961		17,225		—		30,303		—		140,509
Total revenues - affiliated customers	—		14,173		3,742		26,796		(953)		43,758		(43,758)		—
Investment and other income	382		413		106		107		—		626		—		1,008
Total revenues	$	110,588	$	25,703	$	5,809	$	44,128	$	(953)	$	74,687	$	(43,758)	$	141,517
Earnings from operations	$	7,203	$	2,090	$	1,541	$	1,883	$	—	$	5,514	$	—	$	12,717
Interest expense	—		—		—		—		—		—		(807)		(807)
Earnings before income taxes	$	7,203	$	2,090	$	1,541	$	1,883	$	—	$	5,514	$	(807)	$	11,910

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