Schedule I

Condensed Financial Information of Registrant

(Parent Company Only)

UnitedHealth Group

Condensed Balance Sheets



(in millions, except per share data)	December 31, 2014			December 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	559		$	822
Short-term notes receivable from subsidiaries	27			11
Deferred income taxes and other current assets	271			214
Total current assets	857			1,047
Equity in net assets of subsidiaries	44,643			44,301
Long-term notes receivable from subsidiaries	4,635			4,215
Other assets	278			144
Total assets	$	50,413		$	49,707

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	332		$	335
Note payable to subsidiary	215			215
Commercial paper and current maturities of long-term debt	1,365			1,935
Total current liabilities	1,912			2,485
Long-term debt, less current maturities	15,891			14,804
Deferred income taxes and other liabilities	156			269
Total liabilities	17,959			17,558
Commitments and contingencies (Note 4)
Shareholders’ equity:
Preferred stock, $0.001 par value -10 shares authorized; no shares issued or outstanding	—			—
Common stock, $0.01 par value - 3,000 shares authorized; 954 and 988 issued and outstanding	10			10
Retained earnings	33,836			33,047
Accumulated other comprehensive loss	(1,392		)	(908		)
Total UnitedHealth Group shareholders’ equity	32,454			32,149
Total liabilities and shareholders’ equity	$	50,413		$	49,707

See Notes to the Condensed Financial Statements of Registrant

Schedule I

Condensed Financial Information of Registrant

(Parent Company Only)

UnitedHealth Group

Condensed Statements of Comprehensive Income



	For the Years Ended December 31,
(in millions)	2014			2013			2012
Revenues:
Investment and other income	$	293		$	252		$	28
Total revenues	293			252			28
Operating costs:
Operating costs	1			(9		)	(2		)
Interest expense	554			618			566
Total operating costs	555			609			564
Loss before income taxes	(262		)	(357		)	(536		)
Benefit for income taxes	96			130			192
Loss of parent company	(166		)	(227		)	(344		)
Equity in undistributed income of subsidiaries	5,785			5,852			5,870
Net earnings	5,619			5,625			5,526
Other comprehensive loss	(484		)	(1,346		)	(23		)
Comprehensive income	$	5,135		$	4,279		$	5,503

See Notes to the Condensed Financial Statements of Registrant

Schedule I

Condensed Financial Information of Registrant

(Parent Company Only)

UnitedHealth Group

Condensed Statements of Cash Flows



	For the Years Ended December 31,
(in millions)	2014			2013			2012
Operating activities
Cash flows from operating activities	$	7,445		$	5,099		$	6,116
Investing activities
Issuance of notes to subsidiaries	(436		)	(1,517		)	(4,149		)
Repayments of notes receivable from subsidiaries	—			275			—
Cash paid for acquisitions	(1,852		)	(274		)	(3,737		)
Capital contributions to subsidiaries	(704		)	(942		)	(99		)
Other, net	(9		)	—			—
Cash flows used for investing activities	(3,001		)	(2,458		)	(7,985		)
Financing activities
Common stock repurchases	(4,008		)	(3,170		)	(3,084		)
Proceeds from common stock issuances	462			598			1,078
Cash dividends paid	(1,362		)	(1,056		)	(820		)
(Repayments of) proceeds from commercial paper, net	(794		)	(474		)	1,587
Proceeds from issuance of long-term debt	1,997			2,235			3,966
Repayments of long-term debt	(812		)	(943		)	(986		)
Proceeds of note from subsidiary	—			40			30
Other	(190		)	(74		)	(383		)
Cash flows (used for) from financing activities	(4,707		)	(2,844		)	1,388
Decrease in cash and cash equivalents	(263		)	(203		)	(481		)
Cash and cash equivalents, beginning of period	822			1,025			1,506
Cash and cash equivalents, end of period	$	559		$	822		$	1,025

Supplemental cash flow disclosures
Cash paid for interest	$	578		$	618		$	547
Cash paid for income taxes	4,028			2,765			2,666

See Notes to the Condensed Financial Statements of Registrant

Schedule I

Condensed Financial Information of Registrant

(Parent Company Only)

UnitedHealth Group

Notes to Condensed Financial Statements

1. Basis of Presentation

UnitedHealth Group’s parent company financial information has been derived from its consolidated financial statements and should be read in conjunction with the consolidated financial statements included in this Form 10-K. The accounting policies for the registrant are the same as those described in Note 2 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements.”

2. Subsidiary Transactions

Investment in Subsidiaries. UnitedHealth Group’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries.

Transactions With Subsidiaries. During 2014 the parent company issued intercompany notes of $0.4 billion that were used for the subsidiaries’ general corporate purposes. In 2013, the parent company issued intercompany notes of $1.5 billion that were used primarily to fund the purchase of Amil’s remaining public shares. Additionally in 2013, the $2.6 billion term note issued in 2012 was reclassified to long-term. During 2012, the parent company completed a non-cash exchange of a $3.9 billion intercompany note to a subsidiary for a new term note of $2.6 billion and an equity interest of $1.3 billion.

Dividends. Cash dividends received from subsidiaries and included in Cash Flows from Operating Activities in the Condensed Statements of Cash Flows were $5.5 billion, $5.3 billion and $7.8 billion in 2014, 2013 and 2012, respectively.

3. Commercial Paper and Long-Term Debt

Discussion of commercial paper and long-term debt can be found in Note 8 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements.” Long-term debt obligations of the parent company do not include the other financing obligations at a subsidiary that totaled $150 million and $121 million at December 31, 2014 and 2013, respectively.

Maturities of commercial paper and long-term debt for the years ending December 31 are as follows:



(in millions)
2015	$	1,362
2016	1,096
2017	1,972
2018	1,100
2019	1,000
Thereafter	10,817

4. Commitments and Contingencies

For a summary of commitments and contingencies, see Note 12 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements.”