United Healthcare 2008 Annual Report Download - page 82

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UNITEDHEALTH GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Level 3 activity for the year ended December 31, 2008 is summarized below:
(in millions) Level 3 Activity
Balance at Beginning of Period ..................................................... $133
Purchases, net ................................................................... 216
Net Unrealized Gains ............................................................. 2
Net Realized Losses .............................................................. (54)
Transfer into Level 3 ............................................................. 69
Balance at End of Period .......................................................... $366
Net realized losses were included in Investment and Other Income in the Consolidated Statements of Operations.
6. Property, Equipment and Capitalized Software
A summary of property, equipment and capitalized software is as follows:
(in millions)
December 31,
2008
December 31,
2007
Land ................................................................ $ 32 $ 37
Buildings and Improvements ............................................. 595 511
Computer Equipment ................................................... 1,488 1,064
Furniture and Fixtures .................................................. 250 205
Less Accumulated Depreciation .......................................... (1,353) (757)
Property and Equipment, net ............................................. 1,012 1,060
Capitalized Software ................................................... 2,179 1,882
Less Accumulated Amortization .......................................... (1,010) (821)
Capitalized Software, net ................................................ 1,169 1,061
Total Property, Equipment and Capitalized Software, net ...................... $2,181 $2,121
Depreciation expense for property and equipment for 2008, 2007 and 2006 was $439 million, $359 million and
$282 million, respectively. Amortization expense for capitalized software for 2008, 2007 and 2006 was $290
million, $245 million and $207 million, respectively.
7. Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill, by reporting segment, during the years ended December 31, 2008
and 2007, were as follows:
(in millions)
Health Care
Services OptumHealth Ingenix
Prescription
Solutions Consolidated
Balance at December 31, 2006 ............... $14,266 $1,073 $ 807 $ 676 $16,822
Acquisitions .............................. 9 15 90 — 114
Subsequent Payments and Adjustments, net ..... (136) (8) 61 1 (82)
Balance at December 31, 2007 ............... 14,139 1,080 958 677 16,854
Acquisitions .............................. 2,986 54 74 148 3,262
Subsequent Payments and Adjustments, net ..... (81) 18 20 15 (28)
Balance at December 31, 2008 ............... $17,044 $1,152 $1,052 $ 840 $20,088
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