United Healthcare 2008 Annual Report Download - page 46
Download and view the complete annual report
Please find page 46 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.-
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
 |
 |
Cost of Products Sold
Cost of products sold increased due to increased prescription volume at our Prescription Solutions reporting
segment, primarily related to the Fiserv Health acquisition.
Depreciation and Amortization
The increase in depreciation and amortization was primarily related to higher levels of computer equipment and
capitalized software as a result of technology development and enhancements, as well as additional depreciation
and amortization related to recent business acquisitions.
Interest Expense
Interest expense increased due to an increase in our debt outstanding, which was partially offset by lower market
interest rates on our floating-rate debt.
Income Taxes
The decrease in our effective income tax rate was primarily due to lower earnings resulting in an increased
proportion of tax-free investment income to total earnings.
Reporting Segments
We have four reporting segments:
• Health Care Services, which includes UnitedHealthcare, Ovations and AmeriChoice;
• OptumHealth;
• Ingenix; and
• Prescription Solutions.
Transactions between reporting segments principally consist of sales of pharmacy benefit products and services
to Health Care Services customers by Prescription Solutions, certain product offerings sold to Health Care
Services customers by OptumHealth, and medical benefits cost, quality and utilization data and predictive
modeling sold to Health Care Services by Ingenix. These transactions are recorded at management’s estimate of
fair value. Intersegment transactions are eliminated in consolidation.
36