United Healthcare 2013 Annual Report Download - page 84

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Interest Rate and Currency Swaps. Fair values of the Company’s swaps are estimated using the terms of the
swaps and publicly available information including market yield curves. Because the swaps are unique and not
actively traded but are valued using other observable inputs, the fair values are classified as Level 2.
Long-term Debt. The fair value of the Company’s long-term debt is estimated and classified using the same
methodologies as the Company’s investments in debt securities.
AARP Program-related Other Liabilities. AARP Program-related other liabilities consist of liabilities that
represent the amount of net investment gains and losses related to AARP Program-related investments that
accrue to the benefit of the AARP policyholders.
The following table presents a summary of fair value measurements by level and carrying values for items
measured at fair value on a recurring basis in the Consolidated Balance Sheets excluding AARP Program-related
assets and liabilities, which are presented in a separate table below:
(in millions)
Quoted Prices
in Active
Markets
(Level 1)
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
Total
Fair and
Carrying
Value
December 31, 2013
Cash and cash equivalents ............................ $ 7,005 $ 271 $ — $ 7,276
Debt securities—available-for-sale:
U.S. government and agency obligations ............. 1,750 445 — 2,195
State and municipal obligations .................... — 6,977 — 6,977
Corporate obligations ............................ 25 7,274 36 7,335
U.S. agency mortgage-backed securities ............. — 2,218 — 2,218
Non-U.S. agency mortgage-backed securities ......... — 696 6 702
Total debt securities—available-for-sale ................. 1,775 17,610 42 19,427
Equity securities—available-for-sale .................... 1,291 12 269 1,572
Total assets at fair value .............................. $10,071 $17,893 $311 $28,275
Percentage of total assets at fair value ................... 36% 63% 1% 100%
Interest rate swap liabilities ........................... $ — $ 163 $ — $ 163
December 31, 2012
Cash and cash equivalents ............................ $ 7,615 $ 791 $ — $ 8,406
Debt securities—available-for-sale: .....................
U.S. government and agency obligations 1,752 786 — 2,538
State and municipal obligations .................... — 6,667 — 6,667
Corporate obligations ............................ 13 7,185 11 7,209
U.S. agency mortgage-backed securities ............. — 2,238 — 2,238
Non-U.S. agency mortgage-backed securities ......... — 568 6 574
Total debt securities—available-for-sale ................. 1,765 17,444 17 19,226
Equity securities—available-for-sale .................... 450 3 224 677
Interest rate swap assets .............................. — 14 — 14
Total assets at fair value .............................. $ 9,830 $18,252 $241 $28,323
Percentage of total assets at fair value ................... 35% 64% 1% 100%
Interest rate and currency swap liabilities ................ $ — $ 14 $ — $ 14
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