United Healthcare 2015 Annual Report Download - page 48

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share repurchases. In July 2015, we issued debt to fund the acquisition of Catamaran. For more information on
this debt issuance, see Note 9 of Notes to the Consolidated Financial Statements included in Part II, Item 8
“Financial Statements.”
Credit Ratings. Our credit ratings as of December 31, 2015 were as follows:
Moody’s Standard & Poor’s Fitch A.M. Best
Ratings Outlook Ratings Outlook Ratings Outlook Ratings Outlook
Senior unsecured debt ........ A3 Negative A+ Negative A- Negative 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 adverse conditions in the capital markets may increase the cost of borrowing for us or limit our access
to capital.
Share Repurchase Program. We expect continued moderated share repurchase activity through 2016 following
the acquisition of Catamaran. For more information on our share repurchase program, see Note 11 of Notes to the
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements.”
Dividends. In June 2015, our Board increased our quarterly cash dividend to stockholders to an annual dividend
rate of $2.00 per share. For more information on our dividend, see Note 11 of Notes to the Consolidated
Financial Statements included in Part II, Item 8, “Financial Statements.”
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
The following table summarizes future obligations due by period as of December 31, 2015, under our various
contractual obligations and commitments:
(in millions) 2016 2017 to 2018 2019 to 2020 Thereafter Total
Debt (a) ...................................... $7,651 $ 7,938 $ 4,564 $ 26,569 $46,722
Operating leases ............................... 417 695 497 471 2,080
Purchase obligations (b) ......................... 365 230 54 28 677
Future policy benefits (c) ........................ 133 277 283 1,936 2,629
Unrecognized tax benefits (d) .................... 4 — — 207 211
Other liabilities recorded on the Consolidated Balance
Sheet (e) ................................... 185 4 — 1,477 1,666
Other obligations (f) ............................ 52 64 20 16 152
Redeemable noncontrolling interests (g) ............ 55 1,453 228 — 1,736
Total contractual obligations ..................... $8,862 $ 10,661 $ 5,646 $ 30,704 $55,873
(a) Includes interest coupon payments and maturities at par or put values. The table also assumes amounts are
outstanding through their contractual term. See Note 9 of Notes to the Consolidated Financial Statements
included in Part II, Item 8, “Financial Statements” for more detail.
(b) Includes fixed or minimum commitments under existing purchase obligations for goods and services,
including agreements that are cancelable with the payment of an early termination penalty. Excludes
agreements that are cancelable without penalty and excludes liabilities to the extent recorded in our
Consolidated Balance Sheets as of December 31, 2015.
(c) Future policy benefits represent account balances that accrue to the benefit of the policyholders, excluding
surrender charges, for universal life and investment annuity products and for long-duration health policies
46