UNITEDHEALTH GROUP INC
For the period ended Dec 31, 2025. Filed Mar 2, 2026.
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FY2025 · Filed Mar 2, 2026
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14. Dispositions and Held for Sale
- Dispositions and Held for Sale
2025 Dispositions and Held for Sale
In the fourth quarter of 2025, the Company entered into an agreement to sell its remaining South American operations, which is expected to close in the second half of 2026, subject to regulatory and other customary closing conditions. Losses related to this transaction are included within loss on sale of subsidiary and subsidiaries held for sale on the Consolidated Statements of Operations as they relate to the strategic exit of South American markets and include significant losses related to foreign currency translation effects.
The Company initiated various other dispositions in the fourth quarter of 2025, which were classified as held for sale as of December 31, 2025. Losses related to these actions were $950 million and were included within operating costs on the Consolidated Statements of Operations.
Assets and liabilities held for sale have been included within prepaid expenses and other current assets and other current liabilities on the Condensed Consolidated Balance Sheets, respectively. The assets and liabilities of the held for sale disposal groups as of December 31, 2025, were as follows:
| (in millions) | South American Businesses | Other Businesses |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $253 | $317 |
| Accounts receivable and other current assets | 747 | 515 |
| Property, equipment and capitalized software | 819 | 292 |
| Goodwill | 176 | 434 |
| Other intangible assets | 257 | 803 |
| Other long-term assets | 320 | 346 |
| Remeasurement of assets of businesses held for sale to fair value less cost to sell (1) | (1,523) | (950) |
| Total assets | $1,049 | $1,757 |
| Liabilities | ||
| Medical costs payable | $205 | $463 |
| Accounts payable and other current liabilities | 408 | 301 |
| Other long-term liabilities | 362 | 407 |
| Total liabilities | $975 | $1,171 |
(1)Includes the effect of $891 million of cumulative foreign currency translation losses and $275 million of noncontrolling interests for the South American businesses held for sale.
2025 Deconsolidation of Business
Due to changes in governance rights, the Company deconsolidated a business that had net assets and redeemable noncontrolling interests with carrying values of $1.4 billion and $2.6 billion, respectively. As a result of the deconsolidation, the Company recorded an equity method investment of $575 million and recognized a gain of $1.7 billion, which was included within operating costs on the Consolidated Statements of Operations.
2024 Dispositions and Held for Sale
During the year ended December 31, 2024, the Company completed or initiated various business portfolio refinement and asset disposition activities. The Company recorded a loss of $7.1 billion related to the sale of its Brazil operations, of which $4.1 billion related to the impact of cumulative foreign currency translation losses previously included in accumulated other comprehensive loss, and a loss of $1.2 billion related to the reclassification of the Company’s remaining South American operations as held for sale, of which $855 million related to the impact of cumulative foreign currency translation losses.
As a result of continued portfolio refinement, the Company sold other businesses and assets and entered into strategic transactions. These transactions resulted in total consideration received of $3.0 billion and an additional $1.9 billion of equity method investments related to the valuation of our retained interests in certain transactions. The carrying value for these transactions was $1.0 billion, primarily related to goodwill. The gains from business portfolio refinement, including strategic transactions, were recorded within operating costs in the Consolidated Statements of Operations and contributed about 80 basis points ($3.3 billion) to the operating cost ratio, nearly half ($1.4 billion) related to Optum Health with the remainder split between UnitedHealthcare ($1.1 billion) and Optum Insight ($800 million). Certain transactions also included various put and call options, which were valued at $630 million and included in other liabilities on the Consolidated Balance Sheets.
- Segment Financial Information
Factors used to determine the Company’s reportable segments include the nature of operating activities, economic characteristics, existence of separate senior management teams and the type of information used by the Company’s chief operating decision maker (CODM), which is the Chief Executive Officer, to evaluate its results of operations. Reportable segments with similar economic characteristics, products and services, customers, distribution methods and operational processes which operate in a similar regulatory environment are combined. The CODM uses consolidated expense information and segment earnings from operations to assess performance and determine allocation of resources.
The following is a description of the types of products and services from which each of the Company’sfour reportable segments derives its revenues:
UnitedHealthcare includes the combined results of operations of UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. The businesses share significant common assets, including a contracted network of physicians, health care professionals, hospitals and other facilities, information technology and consumer engagement infrastructure and other resources. UnitedHealthcare Employer & Individual offers an array of consumer-oriented health benefit plans and services for employers and individuals. UnitedHealthcare Medicare & Retirement provides health care coverage and health and well-being services to individuals age 50 and older, addressing their unique needs. UnitedHealthcare Community & State provides diversified health care benefits products and services to state programs caring for the economically disadvantaged, the medically underserved and those without the benefit of employer-funded health care coverage.
Optum Health focuses on care delivery, including value-based care; care management; wellness and consumer engagement and health financial services. Optum Health is building a comprehensive, connected health care delivery and engagement platform by directly providing high-quality care, helping people manage chronic and complex health needs, and proactively engaging consumers in managing their health through in-person, in-home, virtual and digital clinical platforms.
Optum Insight brings together advanced analytics, technology and health care expertise to deliver integrated services and solutions. Hospital systems, physicians, health plans, governments, life sciences companies and other organizations depend on Optum Insight to help them improve performance, achieve efficiency, reduce costs, meet compliance mandates and modernize their core operating systems to meet the changing needs of the health system.
Optum Rxoffers pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, purchasing and clinical capabilities, and develops programs in areas such as step therapy, formulary management, drug adherence and disease and drug therapy management. Optum Rx integrates pharmacy and medical care and is positioned to serve patients with complex clinical needs and consumers looking for a better digital pharmacy experience with transparent pricing.
The Company’s accounting policies for reportable segment operations are consistent with those described in the Summary of Significant Accounting Policies (see Note 2). Transactions between reportable segments principally consist of sales of pharmacy care products and services to UnitedHealthcare customers by Optum Rx; care delivery, care management services and certain product offerings sold to UnitedHealthcare by Optum Health; and health information and technology solutions, consulting and other services sold to UnitedHealthcare by Optum Insight. These transactions are recorded at management’s estimate of fair value. Transactions with affiliated customers are eliminated in consolidation. Assets and liabilities jointly used are assigned to each reportable segment using estimates of pro-rata usage. Cash and investments are assigned so each reportable segment has working capital and/or at least minimum specified levels of regulatory capital.
As a percentage of the Company’s total consolidated revenues, premium revenues from CMS were 44%,40% and 40% for the years ended December 31, 2025, 2024 and 2023, respectively, most of which were generated by UnitedHealthcare Medicare & Retirement and included in the UnitedHealthcare segment.
On January 1, 2026, the Company realigned certain businesses to respond to changes in the markets it serves and the opportunities that are emerging as the health system evolves. Optum Financial, including Optum Bank, which was historically included in Optum Health will now be included in Optum Insight. The Company’s reportable segments will remain unchanged, with prior period segment financial information being recast to conform to the 2026 presentation, beginning with the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the SEC.
The following table presents the reportable segment financial information:
| Optum | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) · UnitedHealthcare · Optum Health · Optum Insight · Optum Rx · Optum Eliminations · Optum · Corporate andEliminations · Consolidated | |||||||||||
| Revenues - unaffiliated customers: | |||||||||||
| Premiums | $332,390 | $19,839 | $— | $— | $— | $19,839 | $— | $352,229 | |||
| Products | — | 273 | 182 | 52,925 | — | 53,380 | — | 53,380 | |||
| Services | 10,340 | 16,757 | 6,187 | 4,754 | — | 27,698 | — | 38,038 | |||
| Total revenues - unaffiliated customers | 342,730 | 36,869 | 6,369 | 57,679 | — | 100,917 | — | 443,647 | |||
| Total revenues - affiliated customers | — | 63,615 | 12,948 | 96,873 | (5,480) | 167,956 | (167,956) | — | |||
| Investment and other income | 2,173 | 1,473 | 100 | 174 | — | 1,747 | — | 3,920 | |||
| Total revenues | $344,903 | $101,957 | $19,417 | $154,726 | $(5,480) | $270,620 | $(167,956) | $447,567 | |||
| Total operating costs (a) | $335,478 | $102,235 | $16,793 | $147,533 | $(5,480) | $261,081 | $(167,956) | $428,603 | |||
| Earnings from operations | $9,425 | $(278) | $2,624 | $7,193 | $— | $9,539 | $— | $18,964 | |||
| Interest expense | — | — | — | — | — | — | (4,002) | (4,002) | |||
| Loss on sale of subsidiary and subsidiaries held for sale | (265) | — | — | — | — | — | — | (265) | |||
| Earnings before income taxes | $9,160 | $(278) | $2,624 | $7,193 | $— | $9,539 | $(4,002) | $14,697 | |||
| Total assets | $124,051 | $100,991 | $35,400 | $62,262 | $198,653 | $(13,123) | $309,581 | ||||
| Purchases of property, equipment and capitalized software | 816 | 1,237 | 1,170 | 399 | — | 2,806 | — | 3,622 | |||
| Depreciation and amortization | 883 | 1,211 | 1,422 | 845 | — | 3,478 | — | 4,361 | |||
| Revenues - unaffiliated customers: | |||||||||||
| Premiums | $286,004 | $22,806 | $— | $— | $— | $22,806 | $— | $308,810 | |||
| Products | — | 277 | 174 | 49,775 | — | 50,226 | — | 50,226 | |||
| Services | 9,791 | 16,153 | 6,466 | 3,630 | — | 26,249 | — | 36,040 | |||
| Total revenues - unaffiliated customers | 295,795 | 39,236 | 6,640 | 53,405 | — | 99,281 | — | 395,076 | |||
| Total revenues - affiliated customers | — | 63,883 | 11,881 | 79,512 | (4,389) | 150,887 | (150,887) | — | |||
| Investment and other income | 2,413 | 2,239 | 236 | 314 | — | 2,789 | — | 5,202 | |||
| Total revenues | $298,208 | $105,358 | $18,757 | $133,231 | $(4,389) | $252,957 | $(150,887) | $400,278 | |||
| Total operating costs (a) | $282,624 | $97,588 | $15,660 | $127,395 | $(4,389) | $236,254 | $(150,887) | $367,991 | |||
| Earnings from operations | $15,584 | $7,770 | $3,097 | $5,836 | $— | $16,703 | $— | $32,287 | |||
| Interest expense | — | — | — | — | — | — | (3,906) | (3,906) | |||
| Loss on sale of subsidiary and subsidiaries held for sale | (8,310) | — | — | — | — | — | — | (8,310) | |||
| Earnings before income taxes | $7,274 | $7,770 | $3,097 | $5,836 | $— | $16,703 | $(3,906) | $20,071 | |||
| Total assets | $119,009 | $96,472 | $34,452 | $59,086 | $— | $190,010 | $(10,741) | $298,278 | |||
| Purchases of property, equipment and capitalized software | 781 | 1,008 | 1,291 | 419 | — | 2,718 | — | 3,499 | |||
| Depreciation and amortization | 889 | 1,123 | 1,294 | 793 | — | 3,210 | — | 4,099 | |||
| Revenues - unaffiliated customers: | |||||||||||
| Premiums | $269,052 | $21,775 | $— | $— | $— | $21,775 | $— | $290,827 | |||
| Products | — | 207 | 162 | 42,214 | — | 42,583 | — | 42,583 | |||
| Services | 10,057 | 14,109 | 7,760 | 2,197 | — | 24,066 | — | 34,123 | |||
| Total revenues - unaffiliated customers | 279,109 | 36,091 | 7,922 | 44,411 | — | 88,424 | — | 367,533 | |||
| Total revenues - affiliated customers | — | 57,696 | 10,896 | 71,484 | (3,703) | 136,373 | (136,373) | — | |||
| Investment and other income | 2,251 | 1,532 | 114 | 192 | — | 1,838 | — | 4,089 | |||
| Total revenues | $281,360 | $95,319 | $18,932 | $116,087 | $(3,703) | $226,635 | $(136,373) | $371,622 | |||
| Total operating costs (a) | $264,945 | $88,759 | $14,664 | $110,972 | $(3,703) | $210,692 | $(136,373) | $339,264 | |||
| Earnings from operations | $16,415 | $6,560 | $4,268 | $5,115 | $— | $15,943 | $— | $32,358 | |||
| Interest expense | — | — | — | — | — | — | (3,246) | (3,246) | |||
| Earnings before income taxes | $16,415 | $6,560 | $4,268 | $5,115 | $— | $15,943 | $(3,246) | $29,112 | |||
| Total assets | $110,943 | $89,432 | $34,173 | $51,266 | $— | $174,871 | $(12,094) | $273,720 | |||
| Purchases of property, equipment and capitalized software | 866 | 1,199 | 974 | 347 | — | 2,520 | — | 3,386 | |||
| Depreciation and amortization | 989 | 1,058 | 1,229 | 696 | — | 2,983 | — | 3,972 | |||
(a) Total operating costs include medical costs, operating costs, cost of products sold and depreciation and amortization, as applicable for each reportable segment.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.