UNITEDHEALTH GROUP INC
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
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3. Fair Value
- 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 2023 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 Pricesin ActiveMarkets(Level 1) | OtherObservableInputs(Level 2) | UnobservableInputs(Level 3) | TotalFair and CarryingValue |
|---|---|---|---|---|
| Cash and cash equivalents | $26,070 | $216 | $— | $26,286 |
| Debt securities - available-for-sale: | ||||
| U.S. government and agency obligations | 4,571 | 172 | — | 4,743 |
| State and municipal obligations | — | 6,906 | — | 6,906 |
| Corporate obligations | 20 | 21,768 | 197 | 21,985 |
| U.S. agency mortgage-backed securities | — | 8,424 | — | 8,424 |
| Non-U.S. agency mortgage-backed securities | — | 2,676 | — | 2,676 |
| Total debt securities - available-for-sale | 4,591 | 39,946 | 197 | 44,734 |
| Equity securities | 1,701 | 16 | 69 | 1,786 |
| Assets under management | 1,414 | 1,893 | 107 | 3,414 |
| Total assets at fair value | $33,776 | $42,071 | $373 | $76,220 |
| Percentage of total assets at fair value | 44% | 55% | 1% | 100% |
| Cash and cash equivalents | $25,345 | $82 | $— | $25,427 |
| Debt securities - available-for-sale: | ||||
| U.S. government and agency obligations | 4,167 | 276 | — | 4,443 |
| State and municipal obligations | — | 7,353 | — | 7,353 |
| Corporate obligations | 15 | 21,800 | 202 | 22,017 |
| U.S. agency mortgage-backed securities | — | 8,296 | — | 8,296 |
| Non-U.S. agency mortgage-backed securities | — | 2,786 | — | 2,786 |
| Total debt securities - available-for-sale | 4,182 | 40,511 | 202 | 44,895 |
| Equity securities | 2,468 | 16 | 69 | 2,553 |
| Assets under management | 1,505 | 2,140 | 110 | 3,755 |
| Total assets at fair value | $33,500 | $42,749 | $381 | $76,630 |
| Percentage of total assets at fair value | 44% | 55% | 1% | 100% |
There wereno transfers in or out of Level 3 financial assets or liabilities during the six months ended June 30, 2024 or 2023.
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 Pricesin ActiveMarkets(Level 1) | OtherObservableInputs(Level 2) | UnobservableInputs(Level 3) | TotalFairValue | Total Carrying Value |
|---|---|---|---|---|---|
| Debt securities - held-to-maturity | $531 | $27 | $— | $558 | $565 |
| Long-term debt and other financing obligations | $— | $61,144 | $— | $61,144 | $65,186 |
| Debt securities - held-to-maturity | $524 | $72 | $— | $596 | $603 |
| Long-term debt and other financing obligations | $— | $59,851 | $— | $59,851 | $61,449 |
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. The assets and liabilities within our South American operations held for sale as of June 30, 2024 were measured at the lower of carrying value or fair value less cost to sell. Fair value is measured based upon unobservable amounts, such as estimated selling price derived from Company-specific information and market conditions. There wereno other significant fair value adjustments for assets and liabilities recorded during the six months ended June 30, 2024 or 2023.
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