United Healthcare 2008 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2008 United Healthcare annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Any failure by us to manage and complete acquisitions and other significant transactions successfully
could harm our financial results, business and prospects.
As part of our business strategy, we frequently engage in discussions with third parties regarding possible
investments, acquisitions, strategic alliances, joint ventures, and outsourcing transactions and often enter into
agreements relating to such transactions. If we fail to identify and complete successfully transactions that further
our strategic objectives, we may be required to expend resources to develop products and technology internally,
we may be at a competitive disadvantage or we may be adversely affected by negative market perceptions, any of
which may have a material adverse effect on our results of operations, financial position or cash flows.
Downgrades in our debt ratings, should they occur, may adversely affect our business, financial condition
and results of operations.
Claims paying ability, financial strength, and debt ratings by recognized rating organizations are increasingly
important factors in establishing the competitive position of insurance companies. Ratings information is broadly
disseminated and generally used throughout the industry. We believe our claims paying ability and financial
strength ratings are important factors in marketing our products to certain of our customers. Our debt ratings
impact both the cost and availability of future borrowings. Each of the rating agencies reviews its ratings
periodically and there can be no assurance that current ratings will be maintained in the future. Our ratings reflect
each rating agency’s opinion of our financial strength, operating performance, and ability to meet our debt
obligations or obligations to policyholders. Downgrades in our ratings, should they occur, may adversely affect
our business, financial condition and results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2008, we owned and/or leased real properties totaling approximately 15.4 million square feet
to support our business operations in the United States and other countries (net of approximately 0.4 million
square feet of space subleased to third parties). Of this total, we owned approximately 1 million aggregate square
feet of space and leased the remainder. Our leases expire at various dates through September 30, 2028. Our
facilities are primarily located in the United States. Our various reporting segments use these facilities for their
respective business purposes, and we believe these current facilities are suitable for their respective uses and are
adequate for our anticipated future needs.
During 2008, we completed a sale-leaseback transaction for six properties resulting in gross proceeds of $185
million, and pre-tax gains of $72 million that have been deferred and will be amortized straight-line against rent
expense over the term of the underlying leases of 12.5 years.
ITEM 3. LEGAL PROCEEDINGS
See Note 15 of Notes to the Consolidated Financial Statements in this Form 10-K, which is incorporated by
reference herein.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
25