8-KEarnings & ResultsExhibits & Filings

UNITEDHEALTH GROUP INC 8-K Report, Financial Results (Oct 18, 2011)

Filed October 18, 2011For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) filed an 8-K on October 18, 2011, to report its third quarter 2011 results. The primary focus of this filing is the announcement of these results via a press release, which is incorporated by reference. Investors should note the company's use of a non-GAAP financial measure, specifically adjusted cash flows from operating activities, to provide a more comparable view of its performance between periods. The company highlights that this adjusted measure includes a Centers for Medicare & Medicaid Services (CMS) premium payment for October 2011 that was received in September 2011. While management believes this provides a useful perspective for comparing operational results and against industry peers, it's crucial for investors to understand its limitations. The filing explicitly states that these non-GAAP measures should not be considered superior to or a substitute for GAAP financial measures and that a reconciliation between the two is provided in the press release.

Key Highlights

  • 1UnitedHealth Group (UNH) announced its third quarter 2011 financial results via an 8-K filing on October 18, 2011.
  • 2The company issued a press release, incorporated by reference, detailing the Q3 2011 results.
  • 3UNH utilized a non-GAAP financial measure: 'adjusted cash flows from operating activities'.
  • 4This adjusted measure includes a September 2011 receipt of an October 2011 CMS premium payment.
  • 5The company's management believes the non-GAAP measure enhances period-to-period comparability and industry comparisons.
  • 6GAAP financial measures remain the primary basis for financial reporting, with a reconciliation provided for non-GAAP figures.
  • 7The press release dated October 18, 2011, is the main exhibit attached to the 8-K.

Frequently Asked Questions

The main purpose of this 8-K filing is to report UnitedHealth Group's third quarter 2011 results, which were announced in a press release issued on October 18, 2011. The press release is included as an exhibit to the filing.

This is a non-GAAP financial measure that UnitedHealth Group uses to present its operating cash flows. For Q3 2011, it specifically includes a premium payment from the Centers for Medicare & Medicaid Services (CMS) that was received in September 2011 but was intended for October 2011. The company uses this to improve comparability between periods.

No, investors should not rely solely on the non-GAAP financial measures. The filing explicitly states that these measures are not substitutes for or superior to GAAP financial measures. UnitedHealth Group provides a reconciliation between the non-GAAP and GAAP figures in its press release, and investors should consider both.

The timing of the CMS premium payment, receiving the October payment in September, had an impact on the reported cash flows. By adjusting for this, UnitedHealth Group aims to provide a clearer view of underlying operational cash generation that is more comparable to periods without such timing shifts, and also to other healthcare companies.