- Revenues Grew 18% Year-Over-Year to
$185 Billion
- Operating Earnings Exceeded $13
Billion, Up 20% Year-Over-Year
- Full Year Net Earnings were $7.48
Per Share, Up 24% Year-Over-Year, and $1.96 Per Share in the
Fourth Quarter
- Adjusted Net Earnings were $8.05 Per
Share for the Full Year, Up 25% Year-Over-Year, and $2.11 Per Share
in the Fourth Quarter
- Cash Flows from Operations were $9.8
Billion, 134% of Net Earnings
UnitedHealth Group (NYSE:UNH) reported fourth quarter and full
year 2016 results driven by broad-based, balanced growth across the
enterprise. In 2016, UnitedHealthcare grew to serve 2.2 million
more people with medical benefits, through consistent focus on
improving health outcomes, increasing satisfaction and delivering
greater value on behalf of the consumers it serves. Optum combined
strong organic growth and strategic investments to drive revenue
growth of nearly 24 percent in 2016.
“We are privileged today to serve more people in more ways than
ever before, and we know further growth in 2017 and beyond rests on
continuing to drive ever higher quality and increasing value to
consumers, care providers and customers across our spectrum of
businesses,” said Stephen J. Hemsley, chief executive officer of
UnitedHealth Group.
The Company affirmed its 2017 financial outlook, including
estimated revenues of $197 billion to $199 billion, net earnings of
$8.75 to $9.05 per share, adjusted net earnings of $9.30 to $9.60
per share, and cash flows from operations of $11.5 billion to $12
billion.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,2016
December 31,2015
September 30,2016
December 31,2016
December 31,2015
Revenues $47.5 billion $43.6 billion $46.3 billion $184.8 billion
$157.1 billion Earnings From Operations $3.5 billion $2.5 billion
$3.6 billion $13.3 billion $11.0 billion Net Margin 4.0%
2.8% 4.3% 3.9%
3.7%
- UnitedHealth Group’s full year 2016
revenues of $184.8 billion grew 17.6 percent or $27.7 billion
year-over-year. Revenue growth was broad-based and balanced,
reflecting growing demand for the Company’s product and service
offerings. Every major business delivered double-digit percentage
revenue growth, which combined to produce 2016 growth of 13.1
percent for UnitedHealthcare and 23.7 percent for Optum.
- Full year 2016 earnings from operations
were $13.3 billion, up 20.5 percent year-over-year, and adjusted
net earnings grew 24.8 percent to $8.05 per share. Fourth quarter
2016 adjusted net earnings were $2.11 per share.
- Full year 2016 cash flows from
operations of $9.8 billion were 134 percent of net earnings. Fourth
quarter adjusted cash flows were $2.4 billion.
- The full year 2016 consolidated medical
care ratio declined 50 basis points year-over-year to 81.2 percent,
reflecting improved core business performance. In the fourth
quarter of 2016, the combination of improved performance and
reduced individual market pressure resulted in a year-over-year
medical care ratio decline of 190 basis points to 80.8 percent. In
the fourth quarter, $90 million in negative development from
earlier quarters in the year was partially offset by $30 million in
positive development from the prior year. Overall, prior year
reserves developed favorably on a full year basis by $220 million
in 2016 compared to $320 million in 2015.
- The full year 2016 operating cost ratio
of 15.2 percent decreased 30 basis points year-over-year due to
shifts in business mix and improvements in productivity, partially
offset by investments in quality, including Medicare Stars
performance, and to support growth. The fourth quarter 2016
operating cost ratio of 15.7 percent increased from 15.1 percent in
the fourth quarter of 2015 due to continued investments in quality
and to support growth.
- The full year 2016 tax rate of 40.3
percent and fourth quarter tax rate of 41.0 percent both decreased
year-over-year by 230 basis points.
- Year end 2016 days claims payable of 51
days increased 1 day year-over-year and decreased 1 day
sequentially; 2016 days sales outstanding rose 2 days
year-over-year and 1 day sequentially to 16 days, driven by the
rising mix of government business.
- Return on shareholders’ equity of
approximately 20 percent increased 220 basis points in 2016, while
the debt to total capital ratio decreased 250 basis points
year-over-year to 46.2 percent at December 31, 2016. Dividend
payments grew 26.6 percent year-over-year to $2.3 billion in 2016,
and the Company repurchased approximately 10 million shares for
$1.28 billion in 2016, including 1.2 million shares in the fourth
quarter.
UnitedHealthcare provides health care benefits, serving
individuals and employers, Medicare and Medicaid beneficiaries and
the nation’s military, retirees and their families.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,2016
December 31,2015
September 30,2016
December 31,2016
December 31,2015
Revenues $37.9 billion $32.8 billion $37.2 billion $148.6 billion
$131.3 billion Earnings From Operations $1.7 billion $949 million
$2.1 billion $7.7 billion $6.8 billion Operating Margin 4.6%
2.9% 5.7% 5.2%
5.1%
- UnitedHealthcare’s full year 2016
revenues of $148.6 billion grew $17.2 billion or 13.1 percent
year-over-year. The number of people served with medical benefits
grew by 2.2 million year-over-year in 2016, with balanced growth
across U.S. commercial, Medicare and Medicaid offerings. In the
fourth quarter of 2016, UnitedHealthcare grew to serve one-half
million more consumers in domestic and international markets.
- Full year 2016 earnings from operations
for UnitedHealthcare of $7.7 billion increased $900 million from
2015, driven by strong, diversified growth and slightly improved
operating margins. Fourth quarter 2016 earnings from operations
exceeded $1.7 billion, and increased $800 million year-over-year as
the recognition of premium deficiency reserves, primarily related
to the individual ACA market, pressured fourth quarter 2015
operating earnings.
UnitedHealthcare Employer & Individual
- Full year revenues of $53.1 billion
grew $5.9 billion or 12.5 percent year-over-year, including growth
of 11.9 percent to $13.5 billion in the fourth quarter.
- UnitedHealthcare Employer &
Individual grew to serve 30.6 million people at December 31, 2016,
an increase of 850,000 people year-over-year, with fourth quarter
2016 growth of 95,000 people served.
- Risk-based commercial group plans
served 375,000 more people in 2016, including growth of 205,000 in
the fourth quarter. Self-funded offerings for commercial employers
served 335,000 more people in 2016, including 20,000 more in the
fourth quarter.
- Individual insurance offerings
decreased sequentially by 135,000 people in the fourth quarter,
bringing full year growth to 160,000 people.
- As previously announced for 2017,
UnitedHealthcare reduced its offerings to the individual market,
which is expected to reduce the number of people served by nearly 1
million.
UnitedHealthcare Medicare & Retirement
- UnitedHealthcare grew Medicare &
Retirement revenues by $6.6 billion or 13.3 percent year-over-year
to $56.3 billion in 2016, including growth of 15.8 percent to $14.0
billion in the fourth quarter.
- UnitedHealthcare served 7.9 million
seniors with medical benefit products at year end 2016, growth of
8.6 percent year-over-year. Growth was balanced, with 395,000 more
seniors participating in Medicare Advantage and 230,000 more with
Medicare Supplement products. In the fourth quarter of 2016,
seniors served by medical benefit products grew by 50,000 people,
while stand-alone Medicare Part D prescription drug plans declined
over the course of the year as UnitedHealthcare repositioned its
Part D portfolio to grow in 2017.
UnitedHealthcare Community & State
- In 2016, UnitedHealthcare Community
& State revenues of $32.9 billion grew $4 billion or 14 percent
year-over-year, reflecting strong membership growth and an
increasing mix of higher need members. Fourth quarter revenues of
$8.6 billion grew $1.2 billion or 16.6 percent year-over-year.
- UnitedHealthcare Community & State
programs served 585,000 more people year-over-year in 2016, an
increase of 11 percent, including 100,000 more people in the fourth
quarter, and provided benefits and services to 5.9 million people
across a spectrum of programs serving 24 state customers and the
District of Columbia at year end.
Optum is a health services business serving the broad health
care marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers. Using advanced
data analytics and technology, Optum’s people help improve overall
health system performance: optimizing care quality, reducing costs
and improving the consumer experience and care provider
performance.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,2016
December 31,2015
September 30,2016
December 31,2016
December 31,2015
Total Revenues $22.2 billion $21.9 billion $21.1 billion $83.6
billion $67.6 billion Earnings From Operations $1.8 billion $1.5
billion $1.5 billion $5.6 billion $4.3 billion Operating Margin
8.1% 6.9% 6.9% 6.7% 6.3%
- In 2016, Optum revenues grew by $16
billion or 23.7 percent to $83.6 billion, with fourth quarter
revenues increasing to $22.2 billion. Fourth quarter revenues grew
1.2 percent year-over-year, reflecting strong double-digit
percentage growth at OptumHealth and OptumInsight, offset by a 4.8
percent decline in OptumRx revenues due to known Catamaran customer
losses incurred prior to its acquisition by Optum. Optum’s full
year earnings from operations grew more than $1.3 billion or 31.8
percent year-over-year to $5.6 billion, and the full year operating
margin was 6.7 percent. The fourth quarter operating margin of 8.1
percent expanded 120 basis points year-over-year.
- OptumHealth revenues of $16.9 billion grew $3
billion or 21.4 percent year-over-year, driven by growth in health
care delivery businesses, as well as expansion of behavioral
services into new Medicaid markets. OptumHealth served 83 million
people at year end 2016, growing to serve 5 million more people
over the course of the year.
- OptumInsight revenues grew 18.4 percent to $7.3
billion in 2016, including 14.7 percent in the fourth quarter,
driven by growth in revenue management, business process
outsourcing and technology services. Growth in OptumInsight’s
revenue backlog accelerated in the second half of 2016 and backlog
ended the year at $12.6 billion, up 20.7 percent
year-over-year.
- In 2016, OptumRx revenues increased 25.2 percent
year-over-year to $60.4 billion. Fourth quarter revenues of $15.9
billion declined 4.8 percent year-over-year, due to the previously
known Catamaran customer losses. Adjusting to conform to industry
practice for 90 day at retail scripts, OptumRx fulfilled 1.240
billion scripts in 2016, an increase of 308 million or 33 percent
over the prior year.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health and
well-being company dedicated to helping people live healthier lives
and helping make the health system work better for everyone.
UnitedHealth Group offers a broad spectrum of products and services
through two distinct platforms: UnitedHealthcare, which provides
health care coverage and benefits services; and Optum, which
provides information and technology-enabled health services. For
more information, visit UnitedHealth Group at
www.unitedhealthgroup.com or follow @UnitedHealthGrp on
Twitter.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the
Company’s results, strategy and future outlook on a conference call
with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group
will host a live webcast of this conference call from the Investors
page of the Company’s website (www.unitedhealthgroup.com).
Following the call, a webcast replay will be available on the same
site through January 31, 2017. The conference call replay can also
be accessed by dialing 1-800-695-0715. This earnings release and
the Form 8-K dated January 17, 2017 can also be accessed from the
Investors page of the Company’s website.
Non-GAAP Financial
Information
This news release presents non-GAAP financial information
provided as a complement to the results provided in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). A reconciliation of the non-GAAP financial
information to the most directly comparable GAAP financial measure
is provided in the accompanying tables found at the end of this
release.
Forward-Looking
Statements
The statements, estimates, projections, guidance or outlook
contained in this document include “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 (PSLRA). These statements are intended to take advantage of
the “safe harbor” provisions of the PSLRA. Generally the words
“believe,” “expect,” “intend,” “estimate,” “anticipate,”
“forecast,” “outlook,” “plan,” “project,” “should” and similar
expressions identify forward-looking statements, which generally
are not historical in nature. These statements may contain
information about financial prospects, economic conditions and
trends and involve risks and uncertainties. We caution that actual
results could differ materially from those that management expects,
depending on the outcome of certain factors.
Some factors that could cause actual results to differ
materially from results discussed or implied in the forward-looking
statements include: our ability to effectively estimate, price for
and manage our medical costs, including the impact of any new
coverage requirements; new laws or regulations, or changes in
existing laws or regulations, or their enforcement or application,
including increases in medical, administrative, technology or other
costs or decreases in enrollment resulting from U.S., Brazilian and
other jurisdictions’ regulations affecting the health care
industry; assessments for insolvent payers under state guaranty
fund laws; our ability to maintain and achieve improvement in CMS
Star Ratings and other quality scores that impact revenue;
reductions in revenue or delays to cash flows received under
Medicare, Medicaid and other government programs, including
sequestration and the effects of a prolonged U.S. government
shutdown or debt ceiling constraints; changes in Medicare,
including changes in payment methodology, the CMS Star Ratings
program or the application of risk adjustment data validation
audits; cyber-attacks or other privacy or data security incidents;
failure to comply with privacy and data security regulations;
regulatory and other risks and uncertainties of the pharmacy
benefits management industry; competitive pressures, which could
affect our ability to maintain or increase our market share;
changes in or challenges to our public sector contract awards; our
ability to execute contracts on competitive terms with physicians,
hospitals and other service providers; failure to achieve targeted
operating cost productivity improvements, including savings
resulting from technology enhancement and administrative
modernization; increases in costs and other liabilities associated
with increased litigation, government investigations, audits or
reviews; failure to manage successfully our strategic alliances or
complete or receive anticipated benefits of acquisitions and other
strategic transactions; fluctuations in foreign currency exchange
rates on our reported shareholders’ equity and results of
operations; downgrades in our credit ratings; adverse economic
conditions, including decreases in enrollment resulting from
increases in the unemployment rate and commercial attrition; the
performance of our investment portfolio; impairment of the value of
our goodwill and intangible assets in connection with dispositions
or if estimated future results do not adequately support goodwill
and intangible assets recorded for our existing businesses or the
businesses that we acquire; increases in health care costs
resulting from large-scale medical emergencies; failure to maintain
effective and efficient information systems or if our technology
products do not operate as intended; and our ability to obtain
sufficient funds from our regulated subsidiaries or the debt or
capital markets to fund our obligations, to maintain our debt to
total capital ratio at targeted levels, to maintain our quarterly
dividend payment cycle or to continue repurchasing shares of our
common stock.
This list of important factors is not intended to be exhaustive.
We discuss certain of these matters more fully, as well as certain
risk factors that may affect our business operations, financial
condition and results of operations, in our filings with the
Securities and Exchange Commission, including our annual reports on
Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K. Any or all forward-looking statements we make may turn
out to be wrong, and can be affected by inaccurate assumptions we
might make or by known or unknown risks and uncertainties. By their
nature, forward-looking statements are not guarantees of future
performance or results and are subject to risks, uncertainties and
assumptions that are difficult to predict or quantify. Actual
future results may vary materially from expectations expressed or
implied in this document or any of our prior communications. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. We do not undertake
to update or revise any forward-looking statements, except as
required by applicable securities laws.
UNITEDHEALTH GROUP Earnings Release
Schedules and Supplementary Information Year Ended December
31, 2016 - Condensed Consolidated Statements of
Operations - Condensed Consolidated Balance Sheets - Condensed
Consolidated Statements of Cash Flows - Supplemental Financial
Information - Businesses - Supplemental Financial Information -
Business Metrics - Reconciliation of Non-GAAP Financial Measures
UNITEDHEALTH GROUPCONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(in millions, except per share
data)(unaudited)
Three Months
Ended
December 31,
Years Ended
December 31,
2016 2015 2016 2015 Revenues
Premiums $ 36,740 $ 31,727 $ 144,106 $ 127,163 Products 6,959 8,377
26,658 17,312 Services 3,563 3,315 13,236 11,922 Investment and
other income 261 180 828
710 Total revenues 47,523
43,599 184,828 157,107
Operating costs Medical costs 29,696 26,229 117,038 103,875
Operating costs 7,455 6,562 28,039 24,312 Cost of products sold
6,308 7,856 24,416 16,206 Depreciation and amortization 527
484 2,055 1,693
Total operating costs 43,986 41,131
171,548 146,086
Earnings from operations 3,537 2,468 13,280 11,021
Interest expense (268 ) (260 ) (1,067 )
(790 )
Earnings before income taxes 3,269 2,208
12,213 10,231 Provision for income taxes (1,341 )
(956 ) (4,920 ) (4,363 )
Net
earnings 1,928 1,252 7,293 5,868 Earnings attributable
to noncontrolling interests (24 ) (34 ) (56 )
(55 )
Net earnings attributable to
UnitedHealth Group common shareholders
$ 1,904 $ 1,218 $ 7,237 $ 5,813
Diluted earnings per share attributable
to UnitedHealth Group common shareholders
$ 1.96 $ 1.26 $ 7.48 $ 6.01
Adjusted earnings per share
attributable to UnitedHealth Group common shareholders (a)
$ 2.11 $ 1.40 $ 8.05 $ 6.45
Diluted weighted-average common shares outstanding 970
967 968 967
(a) See page 6 for a reconciliation of the
non-GAAP measure
UNITEDHEALTH GROUPCONDENSED CONSOLIDATED BALANCE
SHEETS(in millions)(unaudited)
December
31,2016 December 31,2015 Assets
Cash and short-term investments $ 13,275 $ 12,911 Accounts
receivable, net 8,152 6,523 Other current assets 12,321
12,205 Total current assets 33,748 31,639
Long-term investments 23,868 18,792 Other long-term assets
65,063 60,823 Total assets $ 122,679 $ 111,254
Liabilities, redeemable noncontrolling interests and
equity Medical costs payable $ 16,391 $ 14,330 Commercial paper
and current maturities of long-term debt 7,193 6,634 Other current
liabilities 25,631 21,934 Total current
liabilities 49,215 42,898 Long-term debt, less current
maturities 25,777 25,331 Other long-term liabilities 7,278 7,564
Redeemable noncontrolling interests 2,012 1,736 Equity
38,397 33,725 Total liabilities, redeemable
noncontrolling interests and equity $ 122,679 $ 111,254
UNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(in millions)(unaudited)
Years
Ended
December 31,
2016 2015 Operating Activities Net earnings $
7,293 $ 5,868 Noncash items: Depreciation and amortization 2,055
1,693 Deferred income taxes and other (1 ) (308 ) Share-based
compensation 485 406 Net changes in operating assets and
liabilities (37 ) 2,081 Cash flows from
operating activities 9,795 9,740
Investing Activities Purchases of investments, net of sales
and maturities (5,927 ) (531 ) Purchases of property, equipment and
capitalized software (1,705 ) (1,556 ) Cash paid for acquisitions,
net (1,760 ) (16,164 ) Other, net 37 (144 )
Cash flows used for investing activities (9,355 )
(18,395 )
Financing Activities Common share
repurchases (1,280 ) (1,200 ) Dividends paid (2,261 ) (1,786 ) Net
change in commercial paper and long-term debt 990 14,607 Other, net
1,540 618 Cash flows (used for) from
financing activities (1,011 ) 12,239 Effect of
exchange rate changes on cash and cash equivalents 78
(156 ) (Decrease) increase in cash and cash equivalents (493
) 3,428 Cash and cash equivalents, beginning of period
10,923 7,495 Cash and cash equivalents, end of
period $ 10,430 $ 10,923
UNITEDHEALTH
GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES(in
millions, except percentages)(unaudited)
Three Months Ended
December 31,
Years Ended
December 31,
2016 2015 2016 2015 Revenues
UnitedHealthcare $ 37,936 $ 32,830 $ 148,569 $ 131,343 Optum 22,167
21,899 83,593 67,604 Eliminations (12,580 ) (11,130 )
(47,334 ) (41,840 ) Total consolidated
revenues $ 47,523 $ 43,599 $ 184,828 $ 157,107
Earnings from Operations UnitedHealthcare $
1,748 $ 949 $ 7,657 $ 6,754 Optum (a) 1,789
1,519 5,623 4,267 Total
consolidated earnings from operations $ 3,537 $ 2,468
$ 13,280 $ 11,021
Operating Margin
UnitedHealthcare 4.6 % 2.9 % 5.2 % 5.1 % Optum 8.1 % 6.9 % 6.7 %
6.3 % Consolidated operating margin 7.4 % 5.7 % 7.2 % 7.0 %
Revenues UnitedHealthcare Employer &
Individual $ 13,492 $ 12,055 $ 53,072 $ 47,194 UnitedHealthcare
Medicare & Retirement 14,043 12,128 56,329 49,735
UnitedHealthcare Community & State 8,642 7,409 32,945 28,911
UnitedHealthcare Global 1,759 1,238 6,223 5,503 OptumHealth
4,513 3,668 16,908 13,927 OptumInsight 2,079 1,812 7,333 6,196
OptumRx 15,857 16,657 60,440 48,272 Optum eliminations (282 ) (238
) (1,088 ) (791 )
(a)
Earnings from operations for Optum for the three months and year
ended December 31, 2016 included $420 and $1,428 for OptumHealth;
$563 and $1,513 for OptumInsight; and $806 and $2,682 for OptumRx,
respectively. Earnings from operations for Optum for the three
months and year ended December 31, 2015 included $390 and $1,240
for OptumHealth; $496 and $1,278 for OptumInsight; and $633 and
$1,749 for OptumRx, respectively.
UNITEDHEALTH
GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS
METRICS UNITEDHEALTHCARE CUSTOMER
PROFILE(in thousands) People Served
December 31,
2016
September 30,
2016
December 31,
2015
Commercial risk-based - group 7,470 7,265 7,095 Commercial
risk-based - individual 1,350 1,485 1,190 Commercial fee-based
18,900 18,880 18,565 Fee-based TRICARE 2,860 2,855
2,880 - - -
Total Commercial 30,580
30,485 29,730 Medicare Advantage 3,630 3,600 3,235
Medicaid 5,890 5,790 5,305 Medicare Supplement (Standardized)
4,265 4,245 4,035
Total Public and
Senior 13,785 13,635 12,575
Total
UnitedHealthcare - Domestic Medical 44,365 44,120
42,305 International 4,220 3,970 4,090
Total UnitedHealthcare - Medical 48,585
48,090 46,395
Supplemental Data
Medicare Part D stand-alone 4,930 4,945 5,060
OPTUM PERFORMANCE METRICS December
31,
2016
September 30,
2016
December 31,
2015
OptumHealth Consumers Served (in millions) 83 81 78
OptumInsight Contract Backlog (in billions) $ 12.6 $ 12.6 $ 10.4
OptumRx Quarterly Adjusted Scripts(a) (in millions) 318 309 310
(a) To conform to industry practice for 90 day retail
programs, the Company adjusted how it reports retail prescriptions.
This adjustment includes the conversion of 90 day non-specialty
prescriptions filled through retail networks to now equal three 30
day prescriptions, similar to how home delivery prescriptions are
counted. Total adjusted scripts for 2016 were 1.240 billion and our
forecast for 2017 is revised accordingly to 1.250 - 1.280 billion
from 1.025 - 1.055 billion. Note: UnitedHealth Group served
134 million unique individuals across all businesses at December
31, 2016, 133 million at September 30, 2016, and 129 million at
December 31, 2015.
UNITEDHEALTH GROUP
Reconciliation of Non-GAAP Financial Measures -
Adjusted Net Earnings per Share - Adjusted Cash Flows from
Operations
Use of Non-GAAP Financial Measures
Adjusted net earnings per share and adjusted cash flows from
operations 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. Management believes that the use of adjusted
net earnings per share provides investors and management useful
information about the earnings impact of acquisition-related
intangible asset amortization.
Management believes that the use of
adjusted cash flows from operations provides investors and
management with useful information to compare our cash flows from
operations for the current period to that of other periods, when
the Company does not receive its monthly payment from the Centers
for Medicare and Medicaid Services (CMS) in the applicable quarter.
CMS generally remits their monthly payments on the first calendar
day of the applicable month. However, if the first calendar day of
the month falls on a weekend or a holiday, CMS has typically paid
the Company on the last business day of the preceding calendar
month. As such, quarterly operating cash flows determined in
accordance with GAAP may occasionally include CMS premium payments
for two months or four months. Adjusted cash flows from operating
activities presents operating cash flows assuming all CMS payments
were received on the first calendar day of the applicable
month.
UNITEDHEALTH GROUPRECONCILIATION OF NON-GAAP
FINANCIAL MEASURES(in millions, except per share
data)(unaudited)
ADJUSTED NET
EARNINGS PER SHARE (a)
Three Months Ended
December 31,
Years Ended
December 31,
Projected
Year Ended
2016 2015 2016 2015 December 31,
2017 GAAP net earnings $ 1,904 $ 1,218 $ 7,237 $ 5,813 $8,450
to $8,750 Intangible amortization 222 205 882 650 ~860 Tax effect
of intangible amortization (83 ) (71 ) (324 )
(227 ) ~(320) Adjusted net earnings $ 2,043 $ 1,352
$ 7,795 $ 6,236 $8,990 to $9,290 GAAP
diluted earnings per share $ 1.96 $ 1.26 $ 7.48 $ 6.01 $8.75 to
$9.05 Intangible amortization per share 0.23 0.21 0.91 0.67 ~0.90
Tax effect of intangible amortization per share (0.08 )
(0.07 ) (0.34 ) (0.23 ) ~(0.35) Adjusted
diluted earnings per share $ 2.11 $ 1.40 $ 8.05
$ 6.45 ~$9.30 to $9.60
(a)
GAAP and adjusted net earnings are attributable to UnitedHealth
Group common shareholders.
ADJUSTED CASH FLOWS FROM
OPERATIONS Three Months Ended
December 31, 2016
GAAP cash flows from operations $ (1,409 ) Add: October CMS premium
payments received in September 3,777 Adjusted cash
flows from operations $ 2,368
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UnitedHealth GroupInvestors:Brett Manderfeld, 952-936-7216Vice
PresidentorJohn S. Penshorn, 952-936-7214Senior Vice
PresidentorMedia:Tyler Mason, 424-333-6122Vice President
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