United Healthcare 2010 Annual Report Download - page 52

Debt Tender. In February 2010, we completed cash tender offers for $775 million aggregate principal amount of
certain of our outstanding notes. We believe this debt repurchase will improve the matching of floating rate
assets and liabilities on our balance sheet and reduce our debt service cost. We used cash on hand to fund the
purchase of the notes.
Dividends. In May 2010, our Board of Directors increased our cash dividend to shareholders and moved us to a
quarterly dividend payment cycle. Declaration and payment of future quarterly dividends are at the discretion of
the Board and may be adjusted as business needs or market conditions change. Prior to May 2010, our policy had
been to pay an annual dividend.
The following table provides details of our dividend payments:
Year
Aggregate
Amount per Share Total Amount Paid
(in millions)
2008 ......................................................... $0.030 $ 37
2009 ......................................................... 0.030 36
2010 ......................................................... 0.405 449
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
The following table summarizes future obligations due by period as of December 31, 2010, under our various
contractual obligations and commitments:
(in millions) 2011 2012 to 2013 2014 to 2015 Thereafter Total
Debt (a) ...................................... $3,008 $2,228 $1,780 $11,360 $18,376
Operating leases ............................... 259 431 285 579 1,554
Purchase obligations (b) ......................... 264 114 5 1 384
Future policy benefits (c) ........................ 126 356 380 1,625 2,487
Unrecognized tax benefits (d) .................... 20 0 0 147 167
Other liabilities recorded on the Consolidated Balance
Sheet (e) ................................... 364 100 0 2,268 2,732
Other obligations (f) ............................ 76 88 72 12 248
Total contractual obligations ..................... $4,117 $3,317 $2,522 $15,992 $25,948
(a) Includes interest coupon payments and maturities at par or put values. Coupon payments have been
calculated using stated rates from the debt agreements and assuming amounts are outstanding through their
contractual term. For variable-rate obligations, we used the rates in place as of December 31, 2010 to
estimate all remaining contractual payments. See Note 8 of Notes to the Consolidated Financial Statements
for more detail.
(b) Includes fixed or minimum commitments under existing purchase obligations for goods and services,
including agreements that are cancelable with the payment of an early termination penalty. Excludes
agreements that are cancelable without penalty and excludes liabilities to the extent recorded in our
Consolidated Balance Sheets as of December 31, 2010.
(c) Estimated payments required under life and annuity contracts and health policies sold to individuals for
which some of the premium received in the earlier years is intended to pay benefits to be incurred in future
years. Under our reinsurance arrangement with OneAmerica Financial Partners, Inc. (OneAmerica) these
amounts are payable by OneAmerica, but we remain liable to the policyholders if they are unable to pay.
We have recorded a corresponding reinsurance receivable from OneAmerica in our Consolidated Financial
Statements.
(d) Since the timing of future settlements is uncertain, the long-term portion has been classified as “Thereafter.”
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