2. Basis of
Presentation
The
accompanying unaudited consolidated financial statements have been
prepared in accordance with U.S. generally accepted accounting
principles, or GAAP, for interim financial reporting. Accordingly,
they do not include all of the information and footnotes required
by GAAP for complete financial statements. In the opinion of
management, all adjustments, including normal recurring
adjustments, necessary for a fair statement of the consolidated
financial statements as of and for the three months ended
March 31, 2010 and 2009 have been recorded. The results of
operations for the three months ended March 31, 2010 are not
necessarily indicative of the results that may be expected for the
full year ending December 31, 2010. These unaudited
consolidated financial statements should be read in conjunction
with our audited consolidated financial statements for the year
ended December 31, 2009 included in our Annual Report on Form
10-K.
Certain of our
subsidiaries operate outside of the United States and have
functional currencies other than the U.S. dollar, or USD. We
translate the assets and liabilities of those subsidiaries to USD
using the exchange rate in effect at the end of the period. We
translate the revenues and expenses of those subsidiaries to USD
using the average exchange rates in effect during the period. The
net effect of these translation adjustments is included in
“Foreign currency translation adjustments” in our
consolidated statements of shareholders’ equity.
Our benefit
expense includes costs of care for health services consumed by our
members, such as outpatient care, inpatient hospital care,
professional services (primarily physician care) and pharmacy
benefit costs. Beginning January 1, 2010, we began classifying
certain claims-related costs, which were historically classified as
administrative expense, as benefit expense to better reflect costs
incurred for our members’ traditional medical care as well as
those expenses which improve our members’ health and medical
outcomes. These reclassified costs are comprised of expenses
incurred for: (i) medical management, including case and
utilization management; (ii) health and wellness, including
disease management services for such things as diabetes, high-risk
pregnancies, congestive heart failure and asthma management and
wellness initiatives like weight-loss programs and smoking
cessation treatments; and (iii) clinical health policy. These
types of claims-related costs ultimately lower our members’
cost of care. Prior year amounts have been reclassified to conform
to the new presentation.
Certain other
prior year amounts have been reclassified to conform to the current
year presentation.
Free historical financial statements for Elevance Health.
See how revenue, income, cash flow, and balance sheet financials have changed over 59 quarters since 2010. Compare with ELV stock chart to see long term trends.
Data imported from Elevance Health SEC filings. Check original filings before making any investment decision.