United Healthcare 2006 Annual Report Download - page 93

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by unfavorable changes in the credit ratings associated with these securities. We evaluate impairment at each
reporting period for each of the securities where the fair value of the investment is less than its cost. The
contractual cash flows of the U.S. Government and Agency obligations are either guaranteed by the U.S.
Government or an agency of the U.S. Government. It is expected that the securities would not be settled at a price
less than the cost of our investment. We evaluated the credit ratings of the state and municipal obligations and the
corporate obligations, noting neither a significant deterioration since purchase nor other factors leading to other-
than-temporary impairment.
A portion of the Company’s investments in equity securities consists of investments held by our UnitedHealth
Capital business in various public and nonpublic companies concentrated in the areas of health care delivery and
related information technologies. Market conditions that affect the value of health care and related technology
stocks will likewise impact the value of our equity portfolio. The equity securities were evaluated for severity
and duration of unrealized loss, overall market volatility and other market factors.
We analyze relevant factors individually and in combination including the length of time and extent to which
market value has been less than cost, the financial condition and near-term prospects of the issuer as well as
specific events or circumstances that may influence the operations of the issuer, and our intent and ability to hold
the investment for a sufficient time to recover our cost. We revise impairment judgments when new information
becomes known or when we do not anticipate holding the investment until recovery. If any of our investments
experience a decline in fair value that is determined to be other-than-temporary, based on analysis of relevant
factors, we record a realized loss in our Consolidated Statements of Operations. We do not consider the
unrealized losses on each of the investments described above to be other-than-temporarily impaired at
December 31, 2006.
We recorded realized gains and losses on sales of investments, as follows:
For the Year Ended
December 31,
(in millions) 2006 2005 2004
Gross Realized Gains ........................................................ $41 $60 $62
Gross Realized Losses ........................................................ (37) (50) (18)
Net Realized Gains ...................................................... $ 4 $10 $44
Included in the realized losses above are impairment charges of $4 million, $8 million and $8 million for 2006,
2005 and 2004, respectively.
7. Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill, by segment, during the years ended December 31, 2006 and 2005
(as restated), were as follows:
(in millions)
Health
Care
Services Uniprise
Specialized
Care Services Ingenix Consolidated
Balance at December 31, 2004 .................... $ 7,505 $903 $ 406 $665 $ 9,479
Acquisitions and Subsequent Payments/Adjustments . . 6,359 14 326 60 6,759
Balance at December 31, 2005 .................... 13,864 917 732 725 16,238
Acquisitions and Subsequent Payments/Adjustments . . 132 29 322 101 584
Balance at December 31, 2006 .................... $13,996 $946 $1,054 $826 $16,822
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