United Healthcare 2009 Annual Report Download - page 76

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UNITEDHEALTH GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In addition to the previously described methods and assumptions for debt and equity securities and interest rate swaps,
the following are the methods and assumptions used to estimate the fair value of the other financial instruments:
AARP Program-related Investments. AARP Program-related investments consist of debt and equity securities
held to fund costs associated with the AARP Program (see Note 13 of Notes to the Consolidated Financial
Statements). The Company elected to measure the AARP Assets Under Management, of which the investments
are a part, at fair value, pursuant to the fair value option. See the preceding discussion regarding the methods and
assumptions used to estimate the fair value of debt and equity securities.
Senior Unsecured Notes. The fair values of the senior unsecured notes are estimated based on third-party quoted
market prices for the same or similar issues.
The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts and
other current receivables, unearned revenue, accounts payable and accrued liabilities approximate fair value
because of their short-term nature. These assets and liabilities are not listed in the table above.
6. Property, Equipment and Capitalized Software
A summary of property, equipment and capitalized software is as follows:
(in millions)
December 31,
2009
December 31,
2008
Land ................................................................ $ 32 $ 32
Buildings and improvements ............................................. 662 595
Computer equipment ................................................... 1,504 1,488
Furniture and fixtures ................................................... 235 250
Less accumulated depreciation ........................................... (1,487) (1,353)
Property and equipment, net ............................................. 946 1,012
Capitalized software .................................................... 2,445 2,179
Less accumulated amortization ........................................... (1,251) (1,010)
Capitalized software, net ................................................ 1,194 1,169
Total property, equipment and capitalized software, net ........................ $2,140 $ 2,181
Depreciation expense for property and equipment for 2009, 2008 and 2007 was $436 million, $439 million and
$359 million, respectively. Amortization expense for capitalized software for 2009, 2008 and 2007 was $314
million, $290 million and $245 million, respectively.
7. Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill, by reporting segment, were as follows:
(in millions)
Health
Benefits OptumHealth Ingenix
Prescription
Solutions Consolidated
Balance at December 31, 2007 ................. $14,139 $1,080 $ 958 $677 $16,854
Acquisitions ................................ 2,986 54 74 148 3,262
Subsequent payments and adjustments, net ....... (81) 18 20 15 (28)
Balance at December 31, 2008 ................. 17,044 1,152 1,052 840 20,088
Acquisitions ................................ 161 40 415 — 616
Subsequent payments and adjustments, net ....... 61 (34) (4) — 23
Balance at December 31, 2009 ................. $17,266 $1,158 $1,463 $840 $20,727
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