United Healthcare 2006 Annual Report Download - page 31

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CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
For the Year Ended December 31, 2002
(in millions, except per share data) APB 25 — Historical Accounting Method FAS 123R — Current Accounting Method
As Reported Adjustments (1) As Restated Adoption (2) Adjustments (3) As Restated
Revenues
Premiums .................. $21,906 $ 808 $22,714 $ — $ — $22,714
Services .................... 2,894 (310) 2,584 — — 2,584
Products ................... — 345 345 — — 345
Investment and Other Income . . . 220 (2) 218 — — 218
Total Revenues .......... 25,020 841 25,861 — — 25,861
Operating Costs
Medical Costs ............... 18,192 746 18,938 — — 18,938
Operating Costs .............. 4,387 (11) 4,376 12 62 4,450
Cost of Products Sold ......... — 249 249 — — 249
Depreciation and
Amortization .............. 255 — 255 — — 255
Total Operating Costs ..... 22,834 984 23,818 12 62 23,892
Earnings From Operations ....... 2,186 (143) 2,043 (12) (62) 1,969
Interest Expense ............. (90) — (90) — — (90)
Earnings Before Income Taxes .... 2,096 (143) 1,953 (12) (62) 1,879
Provision for Income Taxes .... (744) 42 (702) 11 18 (673)
Net Earnings ................... $ 1,352 $ (101) $ 1,251 $ (1) $ (44) $ 1,206
Basic Net Earnings per Common
Share ........................ $ 1.12 $(0.09) $ 1.03 $ — $(0.04) $ 0.99
Diluted Net Earnings per Common
Share ....................... $ 1.06 $(0.07) $ 0.99 $ — $(0.04) $ 0.95
Basic Weighted-Average Number of
Common Shares Outstanding . . . 1,214 — 1,214 — — 1,214
Dilutive Effect of Common Stock
Equivalents .................. 58 (2) 56 2 — 58
Diluted Weighted-Average Number
of Common Shares
Outstanding .................. 1,272 (2) 1,270 2 — 1,272
Financial Highlights and Management’s Discussion and Analysis of Financial Condition and Results of Operations
should be read together with the accompanying Consolidated Financial Statements and Notes.
(1) Includes $144 million of stock-based compensation and $44 million of deferred tax benefit associated with the
restatement of our historical APB 25 Consolidated Statement of Operations as well as an adjustment to premium
revenue of $897 million, medical costs of $825 million and operating costs of $72 million to reflect a reinsurance
contract on a gross basis. In order to conform to our current presentation, we have also reclassified certain service
revenues and operating costs to product revenues and costs of products sold, respectively, primarily related to our
pharmacy benefit management business acquired as part of the PacifiCare acquisition in December 2005.
(2) Reflects $156 million of stock-based compensation and $55 million of deferred tax benefit as recorded under the
modified retrospective method of adoption of FAS 123R, net of the restatement adjustments under APB 25.
(3) Represents adjustments made to restate our Consolidated Statement of Operations subsequent to the adoption of
FAS 123R under the modified retrospective method of adoption and includes $62 million of additional stock-
based compensation expense and $18 million of related deferred tax benefit.
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