United Healthcare 2006 Annual Report Download - page 27

ITEM 6. SELECTED FINANCIAL DATA
Financial Highlights
We derived the selected consolidated financial data for 2005 and 2004 from our audited restated consolidated
financial statements and notes thereto appearing in Item 8 of this Form 10-K. The consolidated statement of
operations data for 2003 and 2002 and the consolidated balance sheet data as of the years ended 2004, 2003 and
2002 have been restated to conform to the restated consolidated financial statements included in this Form 10-K
and are presented herein on an unaudited basis. We have presented these selected financial data on both a
FAS 123R basis, which we adopted on January 1, 2006, and on an APB 25 basis, our historical accounting
method for periods prior to January 1, 2006.
FAS 123R (1)—Current Accounting Method
For the Year Ended December 31,
(in millions, except per share data) 2006 (2,3) 2005 (2,4) 2004 (2,4) 2003 (4) 2002 (4)
(As Restated) (As Restated) (As Restated) (As Restated)
Consolidated Operating Results
Revenues .............................. $71,542 $46,425 $38,217 $29,696 $25,861
Earnings From Operations ................ $ 6,984 $ 5,080 $ 3,858 $ 2,671 $ 1,969
Net Earnings ........................... $ 4,159 $ 3,083 $ 2,411 $ 1,655 $ 1,206
Return on Shareholders’ Equity ............ 22.2% 25.2% 29.0% 34.6% 28.8%
Basic Net Earnings per Common Share ...... $ 3.09 $ 2.44 $ 1.93 $ 1.40 $ 0.99
Diluted Net Earnings per Common Share .... $ 2.97 $ 2.31 $ 1.83 $ 1.34 $ 0.95
Common Stock Dividends per Share ........ $ 0.030 $ 0.015 $ 0.015 $ 0.008 $ 0.008
Consolidated Cash Flows From (Used For)
Operating Activities ..................... $ 6,526 $ 4,083 $ 3,923 $ 2,913 $ 2,348
Investing Activities ...................... $(2,101) $ (3,489) $ (1,644) $ (745) $ (1,391)
Financing Activities ..................... $ 474 $ 836 $ (550) $ (1,036) $ (1,367)
Consolidated Financial Condition
(As of December 31)
Cash and Investments .................... $20,582 $14,982 $12,253 $ 9,477 $ 6,329
Total Assets ........................... $48,320 $41,288 $27,862 $17,668 $14,187
Debt ................................. $ 7,456 $ 7,095 $ 4,011 $ 1,979 $ 1,761
Shareholders’ Equity .................... $20,810 $17,815 $10,772 $ 5,236 $ 4,551
Debt-to-Total-Capital Ratio ............... 26.4% 28.5% 27.1% 27.4% 27.9%
Financial Highlights and Management’s Discussion and Analysis of Financial Condition and Results of
Operations should be read together with the accompanying Consolidated Financial Statements and Notes.
(1) UnitedHealth Group adopted FAS 123R on a modified retrospective basis on January 1, 2006. This method
of adoption requires all prior periods to be restated by the amounts previously disclosed on a pro-forma
basis under FAS 123.
(2) UnitedHealth Group acquired PacifiCare in December 2005 for total consideration of approximately $8.8
billion, Oxford Health Plans, Inc. (Oxford) in July 2004 for total consideration of approximately $5.0 billion
and Mid-Atlantic Medical Services, Inc. (MAMSI) in February 2004 for total consideration of
approximately $2.7 billion. These acquisitions affect the comparability of 2006, 2005 and 2004 financial
information to prior fiscal years. The results of operations and financial condition of PacifiCare, Oxford and
MAMSI have been included in UnitedHealth Group’s Consolidated Financial Statements since the
respective acquisition dates.
(3) On January 1, 2006, the Company began serving as a plan sponsor offering Medicare Part D drug insurance
coverage under a contract with CMS. Total revenues generated under this program were $5.7 billion for the
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