Segment Financial Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Financial Information

Segment Financial Information

Factors used in determining the Company’s reportable segments include the nature of operating activities, economic characteristics, existence of separate senior management teams and the type of information presented to the Company’s chief operating decision-maker to evaluate its results of operations. Reportable segments with similar economic characteristics are combined.

The following is a description of the types of products and services from which each of the Company's reportable segments derives its revenues:

• UnitedHealthcare includes the combined results of operations of UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State because they have similar economic characteristics, products and services, customers, distribution methods and operational processes and operate in a similar regulatory environment. These businesses also share significant common assets, including a contracted network of physicians, health care professionals, hospitals and other facilities, information technology infrastructure and other resources. UnitedHealthcare Employer & Individual offers a comprehensive array of consumer-oriented health benefit plans and services for large national employers, public sector employers, mid-sized employers, small businesses and individuals nationwide. UnitedHealthcare Medicare & Retirement provides health and well-being services to individuals age 50 and older, addressing their unique needs for preventive and acute health care services as well as services dealing with chronic disease and other specialized issues for older individuals. UnitedHealthcare Community & State provides health plans and care programs to beneficiaries of acute and long-term care Medicaid plans, the Children's Health Insurance Program (CHIP), Special Needs Plans and other federal and state health care programs.

• OptumHealth serves the physical, emotional and financial needs of individuals, enabling consumer health management and collaborative care delivery through programs offered by employers, payers, government entities and directly with the care delivery system. OptumHealth offers personalized health management services, decision support services, access to networks of care provider specialists, well-being solutions, behavioral health management solutions, financial services and clinical services.

• OptumInsight is a health information, technology, services and consulting company providing software and information products, advisory consulting services, and business process outsourcing to participants in the health care industry. Hospitals, physicians, commercial health plans, government agencies, life sciences companies and other organizations that comprise the health care system work with OptumInsight to reduce costs, meet compliance mandates, improve clinical performance and adapt to the changing health system landscape.

• OptumRx offers a multitude of pharmacy benefit management services including providing prescribed medications, patient support and clinical programs. OptumRx also provides claims processing, retail network contracting, rebate contracting and management and clinical programs, such as step therapy, formulary management and disease/drug therapy management programs to achieve a low-cost, high-quality pharmacy benefit.

The Company’s accounting policies for reportable segment operations are consistent with those described in the Summary of Significant Accounting Policies (see Note 2 of Notes to the Consolidated Financial Statements). Transactions between reportable segments principally consist of sales of pharmacy benefit products and services to UnitedHealthcare customers by OptumRx, certain product offerings sold to UnitedHealthcare customers by OptumHealth, and medical benefits cost, quality and utilization data and predictive modeling sold to UnitedHealthcare by OptumInsight. These transactions are recorded at management’s estimate of fair value. Intersegment transactions are eliminated in consolidation. Assets and liabilities that are jointly used are assigned to each reportable segment using estimates of pro-rata usage. Cash and investments are assigned such that each reportable segment has at least minimum specified levels of regulatory capital or working capital for non-regulated businesses. Substantially all of the Company’s assets are held and operations are conducted in the United States.

As a percentage of the Company’s total consolidated revenues, premium revenues from CMS were 28% for the year ended

December 31, 2011 and 27% for both the years ended December 31, 2010 and 2009, most of which were generated by UnitedHealthcare Medicare & Retirement and included in the UnitedHealthcare segment.

Prior period reportable segment financial information has been recast to conform to the 2011 presentation as discussed in Note 2 of Notes to the Consolidated Financial Statements. Corporate and intersegment eliminations are presented to reconcile the reportable segment results to the consolidated results. The following table presents reportable segment financial information:

			Optum
(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Total Optum		Corporate and Intersegment Eliminations			Consolidated
2011
Revenues - external customers:
Premiums	$	90,487	$	1,496	$	—	$	—	$	1,496	$	—		$	91,983
Services	4,291		628		1,616		78		2,322		—			6,613
Products	—		24		96		2,492		2,612		—			2,612
Total revenues - external customers	94,778		2,148		1,712		2,570		6,430		—			101,208
Total revenues - intersegment	—		4,461		958		16,708		22,127		(22,127		)	—
Investment and other income	558		95		1		—		96		—			654
Total revenues	$	95,336	$	6,704	$	2,671	$	19,278	$	28,653	$	(22,127	)	$	101,862
Earnings from operations	$	7,203	$	423	$	381	$	457	$	1,261	$	—		$	8,464
Interest expense	—		—		—		—		—		(505		)	(505		)
Earnings before income taxes	$	7,203	$	423	$	381	$	457	$	1,261	$	(505	)	$	7,959
Total Assets	$	52,618	$	6,756	$	5,308	$	3,503	$	15,567	$	(296	)	$	67,889
Purchases of property, equipment and capitalized software	$	635	$	168	$	175	$	89	$	432	$	—		$	1,067
Depreciation and amortization	$	680	$	154	$	195	$	95	$	444	$	—		$	1,124
2010
Revenues - external customers:
Premiums	$	84,158	$	1,247	$	—	$	—	$	1,247	$	—		$	85,405
Services	4,021		331		1,403		64		1,798		—			5,819
Products	—		19		93		2,210		2,322		—			2,322
Total revenues - external customers	88,179		1,597		1,496		2,274		5,367		—			93,546
Total revenues - intersegment	—		2,912		845		14,449		18,206		(18,206		)	—
Investment and other income	551		56		1		1		58		—			609
Total revenues	$	88,730	$	4,565	$	2,342	$	16,724	$	23,631	$	(18,206	)	$	94,155
Earnings from operations	$	6,740	$	511	$	84	$	529	$	1,124	$	—		$	7,864
Interest expense	—		—		—		—		—		(481		)	(481		)
Earnings before income taxes	$	6,740	$	511	$	84	$	529	$	1,124	$	(481	)	$	7,383
Total Assets	$	50,913	$	3,897	$	5,435	$	3,087	$	12,419	$	(269	)	$	63,063
Purchases of property, equipment and capitalized software	$	525	$	117	$	156	$	80	$	353	$	—		$	878
Depreciation and amortization	$	725	$	100	$	159	$	80	$	339	$	—		$	1,064
Goodwill impairment	$	—	$	—	$	172	$	—	$	172	$	—		$	172

			Optum
(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Total Optum		Corporate and Intersegment Eliminations			Consolidated
2009
Revenues - external customers:
Premiums	$	78,251	$	1,064	$	—	$	—	$	1,064	$	—		$	79,315
Services	3,941		274		1,042		49		1,365		—			5,306
Products	—		16		90		1,819		1,925		—			1,925
Total revenues - external customers	82,192		1,354		1,132		1,868		4,354		—			86,546
Total revenues - intersegment	—		2,805		691		12,532		16,028		(16,028		)	—
Investment and other income	538		53		—		1		54		—			592
Total revenues	$	82,730	$	4,212	$	1,823	$	14,401	$	20,436	$	(16,028	)	$	87,138
Earnings from operations	$	4,833	$	599	$	246	$	681	$	1,526	$	—		$	6,359
Interest expense	—		—		—		—		—		(551		)	(551		)
Earnings before income taxes	$	4,833	$	599	$	246	$	681	$	1,526	$	(551	)	$	5,808
Total Assets	$	49,920	$	3,190	$	2,775	$	3,092	$	9,057	$	68		$	59,045
Purchases of property, equipment and capitalized software	$	482	$	71	$	129	$	57	$	257	$	—		$	739
Depreciation and amortization	$	679	$	105	$	128	$	79	$	312	$	—		$	991