UnitedHealth Group Inc. (UNH)

Cash Flow Statement

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

UnitedHealth Group Inc., consolidated cash flow statement

US$ in millions

12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net earnings	12,382	10,823	7,073	5,868	5,619
Depreciation and amortization	2,428	2,245	2,055	1,693	1,478
Deferred income taxes	42	(965)	81	(73)	(117)
Share-based compensation	638	597	485	406	364
Other, net	(71)	217	(82)	(235)	(298)
Noncash items	3,037	2,094	2,539	1,791	1,427
Accounts receivable	(1,351)	(1,062)	(1,357)	(591)	(911)
Other assets	(750)	(630)	(1,601)	(1,430)	(590)
Medical costs payable	1,831	1,284	1,849	2,585	484
Accounts payable and other liabilities	526	930	1,494	1,280	1,637
Unearned revenues	38	157	(202)	237	385
Net change in other operating items, net of effects from acquisitions and changes in AARP balances	294	679	183	2,081	1,005
Cash flows from operating activities	15,713	13,596	9,795	9,740	8,051
Purchases of investments	(14,010)	(14,588)	(17,547)	(9,939)	(9,928)
Sales of investments	3,641	4,623	7,339	6,054	7,701
Maturities of investments	6,270	5,646	4,281	3,354	3,026
Cash paid for acquisitions, net of cash assumed	(5,997)	(2,131)	(1,760)	(16,164)	(1,923)
Purchases of property, equipment and capitalized software	(2,063)	(2,023)	(1,705)	(1,556)	(1,525)
Other, net	(226)	(126)	37	(144)	115
Cash flows used for investing activities	(12,385)	(8,599)	(9,355)	(18,395)	(2,534)
Common stock repurchases	(4,500)	(1,500)	(1,280)	(1,200)	(4,008)
Cash dividends paid	(3,320)	(2,773)	(2,261)	(1,786)	(1,362)
Proceeds from common stock issuances	838	688	429	402	462
Repayments of long-term debt	(2,600)	(4,398)	(2,596)	(1,041)	(812)
Proceeds from (repayments of) commercial paper, net	(201)	(3,508)	(382)	3,666	(794)
Proceeds from issuance of long-term debt	6,935	5,291	3,968	11,982	1,997
Customer funds administered	(131)	3,172	1,692	768	(638)
Other, net	(1,386)	(413)	(581)	(552)	(138)
Cash flows from (used for) financing activities	(4,365)	(3,441)	(1,011)	12,239	(5,293)
Effect of exchange rate changes on cash and cash equivalents	(78)	(5)	78	(156)	(5)
Increase (decrease) in cash and cash equivalents	(1,115)	1,551	(493)	3,428	219
Cash and cash equivalents, beginning of period	11,981	10,430	10,923	7,495	7,276
Cash and cash equivalents, end of period	10,866	11,981	10,430	10,923	7,495

Based on: 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09), 10-K (filing date: 2015-02-10).

Item	Description	The company
Cash flows from operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	UnitedHealth Group Inc.’s cash flows from operating activities increased from 2016 to 2017 and from 2017 to 2018.
Cash flows used for investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	UnitedHealth Group Inc.’s cash flows used for investing activities increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Cash flows from (used for) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	UnitedHealth Group Inc.’s cash flows from (used for) financing activities declined from 2016 to 2017 and from 2017 to 2018.