United Healthcare 2014 Annual Report Download - page 51

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Credit Ratings. Our credit ratings as of December 31, 2014 were as follows:
Moody’s Standard & Poor’s Fitch A.M. Best
Ratings Outlook Ratings Outlook Ratings Outlook Ratings Outlook
Senior unsecured debt ............ A3 Stable A+ Stable A- Stable bbb+ Positive
Commercial paper ............... P-2 n/a A-1 n/a F1 n/a AMB-2 n/a
The availability of financing in the form of debt or equity is influenced by many factors, including our
profitability, operating cash flows, debt levels, credit ratings, debt covenants and other contractual restrictions,
regulatory requirements and economic and market conditions. For example, a significant downgrade in our credit
ratings or adverse conditions in the capital markets may increase the cost of borrowing for us or limit our access
to capital.
Share Repurchase Program. In June 2014, our Board renewed our share repurchase program with an
authorization to repurchase up to 100 million shares of our common stock. As of December 31, 2014, we had
Board authorization to purchase up to an additional 71 million shares of our common stock. For more
information on our share repurchase program, see Note 10 of Notes to the Consolidated Financial Statements
included in Part II, Item 8, “Financial Statements.”
Dividends. In June 2014, our Board of Directors increased our quarterly cash dividend to shareholders to an
annual dividend rate of $1.50 per share. For more information on our dividend, see Note 10 of Notes to the
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements.”
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
The following table summarizes future obligations due by period as of December 31, 2014, under our various
contractual obligations and commitments:
(in millions) 2015 2016 to 2017 2018 to 2019 Thereafter Total
Debt (a) ...................................... $2,103 $4,398 $3,193 $17,997 $27,691
Operating leases ............................... 491 715 533 464 2,203
Purchase obligations (b) ......................... 176 173 17 6 372
Future policy benefits (c) ........................ 127 282 289 1,917 2,615
Unrecognized tax benefits (d) .................... 2 — — 83 85
Other liabilities recorded on the Consolidated Balance
Sheet (e) ................................... 207 36 — 1,321 1,564
Other obligations (f) ............................ 143 126 44 33 346
Redeemable noncontrolling interests (g) ............ 83 767 538 — 1,388
Total contractual obligations ..................... $3,332 $6,497 $4,614 $21,821 $36,264
(a) Includes interest coupon payments and maturities at par or put values. The table also assumes amounts are
outstanding through their contractual term. See Note 8 of Notes to the Consolidated Financial Statements
included in Part II, Item 8, “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, 2014.
(c) Future policy benefits represent account balances that accrue to the benefit of the policyholders, excluding
surrender charges, for universal life and investment annuity products and for long-duration 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. See Note 2 of Notes to the Consolidated Financial Statements included in Part II,
Item 8, “Financial Statements” for more detail.
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