United Healthcare 2008 Annual Report Download - page 56

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agreements that are cancelable without penalty and also excludes liabilities to the extent recorded in our
Consolidated Balance Sheets as of December 31, 2008.
(d) Estimated payments required under life and annuity contracts held by a divested entity. Under our
reinsurance arrangement with OneAmerica Financial Partners, Inc. (OneAmerica) these amounts are
payable by OneAmerica, but we remain liable to the policyholders if they are unable to pay. We have
recorded a corresponding reinsurance receivable from OneAmerica in our Consolidated Financial
Statements.
(e) Unrecognized tax benefits relate to the provisions of Financial Accounting Standards Board (FASB)
Interpretation No. 48 (FIN 48). Since the timing of future settlements is uncertain, the long-term portion has
been classified as “Thereafter.” See Note 10 of Notes to the Consolidated Financial Statements for more
detail.
(f) Includes remaining capital commitments for venture capital funds and the investment commitment related to
the PacifiCare acquisition. See Note 15 of Notes to the Consolidated Financial Statements for more detail.
(g) Includes future payments to optionholders related to the application of Section 409A, as well as obligations
associated with certain employee benefit programs and charitable contributions related to the PacifiCare
acquisition discussed below, which have been classified as “Thereafter” due to uncertainty regarding
payment timing.
We do not have other significant contractual obligations or commitments that require cash resources; however,
we continually evaluate opportunities to expand our operations. This includes internal development of new
products, programs and technology applications, and may include acquisitions.
OFF-BALANCE SHEET ARRANGEMENTS
We do not participate or knowingly seek to participate in transactions that generate relationships with
unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special
purpose entities (SPEs), which would have been established for the purpose of facilitating off-balance sheet
arrangements or other contractually narrow or limited purposes. As of December 31, 2008, we were not involved
in any SPE transactions.
RECENTLY ISSUED ACCOUNTING STANDARDS
In April 2008, the FASB issued FASB Staff Position FAS 142-3, “Determination of the Useful Life of Intangible
Assets” (FSP 142-3). FSP 142-3 amends the factors to be considered in developing renewal and extension
assumptions used to determine the useful life of a recognized intangible asset accounted for under FAS No. 142,
“Goodwill and Other Intangible Assets.” FSP 142-3 is effective for our fiscal year 2009 and must be applied
prospectively to intangible assets acquired after January 1, 2009. Early adoption is not permitted. We do not
expect the adoption of FSP 142-3 will have a material impact on our Consolidated Financial Statements.
In December 2007, the FASB issued FAS No. 141 (Revised 2007), “Business Combinations” (FAS 141R), which
replaces FAS No. 141, “Business Combinations.” FAS 141R establishes principles and requirements for how an
acquirer recognizes and measures in our financial statements the identifiable assets acquired, the liabilities
assumed, any noncontrolling interest in the acquiree and the goodwill acquired. The statement also establishes
disclosure requirements that will enable users to evaluate the nature and financial effects of the business
combination. FAS 141R is effective for our fiscal year 2009 and must be applied prospectively to all new
acquisitions closing on or after January 1, 2009. Early adoption of this standard is not permitted. We do not
expect the adoption of FAS 141R will have a material impact on our Consolidated Financial Statements.
In December 2007, the FASB issued FAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — An Amendment of ARB No. 51” (FAS 160). FAS 160 requires that accounting and reporting for
minority interests be recharacterized as noncontrolling interests and classified as a component of equity. The
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