United Healthcare 2012 Annual Report Download - page 89

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The following table presents a summary of fair value measurements by level and carrying values for certain
financial instruments not measured at fair value on a recurring basis in the Consolidated Balance Sheets:
(in millions)
Quoted Prices
in Active
Markets
(Level 1)
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
Total
Fair
Value
Total
Carrying
Value
December 31, 2012
Debt securities — held-to-maturity:
U.S. government and agency obligations .... $174 $ — $ — $ 174 $ 168
State and municipal obligations ............ — 1 29 30 30
Corporate obligations ................... 10 346 287 643 641
Total debt securities — held-to-maturity ........ $184 $ 347 $316 $ 847 $ 839
Long-term debt ............................ $ — $17,034 $ — $17,034 $15,167
December 31, 2011
Debt securities — held-to-maturity:
U.S. government and agency obligations .... $173 $ — $ — $ 173 $ 166
State and municipal obligations ............ — 1 12 13 13
Corporate obligations ................... 9 9 — 18 18
Total debt securities — held-to-maturity ........ $182 $ 10 $ 12 $ 204 $ 197
Long-term debt ............................ $ — $13,149 $ — $13,149 $11,638
The carrying amounts reported in the Consolidated Balance Sheets for accounts and other current receivables,
unearned revenues, commercial paper, accounts payable and accrued liabilities approximate fair value because of
their short-term nature. These assets and liabilities are not listed in the table above. A reconciliation of the
beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as
follows:
December 31, 2012 December 31, 2011 December 31, 2010
(in millions)
Debt
Securities
Equity
Securities Total
Debt
Securities
Equity
Securities Total
Debt
Securities
Equity
Securities Total
Balance at beginning of period .... $208 $209 $ 417 $141 $208 $349 $120 $ 312 $ 432
Purchases ..................... 11 71 82 92 35 127 43 45 88
Sales ........................ — (34) (34) — (17) (17) (4) (167) (171)
Settlements ................... (1) — (1) (25) (7) (32) (20) — (20)
Net unrealized (losses) gains in
accumulated other comprehensive
income ..................... — (14) (14) — (4) (4) — 9 9
Net realized gains (losses) in
investment and other income . . . — 13 13 — (6) (6) 2 9 11
Transfers to held-to-maturity ..... (201) (21) (222) — — — — — —
Balance at end of period ......... $ 17 $224 $ 241 $208 $209 $417 $141 $ 208 $ 349
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