United Healthcare 2013 Annual Report Download - page 53

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Long-term Debt. Periodically, we access capital markets and issue long-term debt for general corporate
purposes, for example, to meet our working capital requirements, to refinance debt, to finance acquisitions or for
share repurchases.
In February 2013, we issued $2.25 billion in senior unsecured notes, which included: $250 million of floating-
rate notes due August 2014, $500 million of 1.625% fixed-rate notes due March 2019, $750 million of 2.875%
fixed-rate notes due March 2023 and $750 million of 4.250% fixed-rate notes due March 2043.
In March and April of 2013, we redeemed all of our outstanding subsidiary variable rate debt for $619 million.
Credit Ratings. Our credit ratings at December 31, 2013 were as follows:
Moody’s Standard & Poor’s Fitch A.M. Best
Ratings Outlook Ratings Outlook Ratings Outlook Ratings Outlook
Senior unsecured debt ............ A3 Stable A Positive A- Stable bbb+ Stable
Commercial paper ............... P-2 n/a A-1 n/a F1 n/a AMB-2 n/a
The availability of financing in the form of debt or equity is influenced by many factors, including our
profitability, operating cash flows, debt levels, credit ratings, debt covenants and other contractual restrictions,
regulatory requirements and economic and market conditions. For example, a significant downgrade in our credit
ratings or conditions in the capital markets may increase the cost of borrowing for us or limit our access to
capital. We have adopted strategies and actions toward maintaining financial flexibility to mitigate the impact of
such factors on our ability to raise capital.
Share Repurchase Program. Under our Board of Directors’ authorization, we maintain a share repurchase
program. The objectives of the share repurchase program are to optimize our capital structure and cost of capital,
thereby improving returns to shareholders, as well as to offset the dilutive impact of share-based awards.
Repurchases may be made from time to time in open market purchases or other types of transactions (including
structured share repurchase programs), subject to certain Board restrictions. In June 2013, our Board renewed
and expanded our share repurchase program with an authorization to repurchase up to 110 million shares of our
common stock. As of December 31, 2013, we had Board authorization to purchase up to an additional 83
million shares of our common stock.
Dividends. In June 2013, our Board of Directors increased our cash dividend to shareholders to an annual
dividend rate of $1.12 per share, paid quarterly. Since June 2012, we had paid an annual cash dividend of $0.85
per share, paid quarterly. Declaration and payment of future quarterly dividends is at the discretion of the Board
and may be adjusted as business needs or market conditions change.
Amil Tender Offer. We acquired all of Amil’s remaining public shares for $1.5 billion in the second quarter of
2013, bringing our ownership in Amil to 90%.
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