Company: ELV
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001156039-25-000010
Chunk: 181

Company: Elevance Health, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 181
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 2024, 2023 and 2022 is as follows:Type of Non-hedging DerivativesIncome Statement Location ofGain (Loss) RecognizedDerivative(Loss) GainRecognizedYear ended December 31, 2024Options (including swaptions)Net losses on financial instruments$(1)CollarsNet losses on financial instruments14 FuturesNet losses on financial instruments(3)Total$10 Year ended December 31, 2023Derivatives embedded in convertible securitiesNet losses on financial instruments$(2)Options (including swaptions)Net losses on financial instruments3 CollarsNet losses on financial instruments(3)FuturesNet losses on financial instruments10 Total$8 Year ended December 31, 2022Derivatives embedded in convertible securitiesNet losses on financial instruments$(3)Interest rate swapsNet losses on financial instruments(4)Options (including swaptions)Net losses on financial instruments13 CollarsNet losses on financial instruments10 Futures64 Total$80 In connection with our equity investment in Mosaic Health (see Note 5, “Investments”), we entered into a limited partnership and related agreements with the majority owners that provides for certain rights and obligations of each party, including certain put, call, and purchase price true-up options. These options, if exercised, will result in our purchase of the units held by the majority owners as early as 2028 but no later than 2030 at a price based on certain multiples of revenue and earnings of Mosaic Health businesses, subject to various adjustments and qualifications. We have calculated the fair value of the net put option, which is a Level III measurement (see Note 7, “Fair Value”), using a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options. Significant changes in assumptions could result in significantly lower or higher fair value measurements. The net put option’s fair value liability of $1,330, which is a non-cash item measured at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheets as of December 31, 2024. We have elected to not mark the net put option to market, as it is an option on large blocks of equity securities, and the carrying value of the net put option will remain on the consolidated balance sheets until it is exercised or expires.As discussed in Note 5, “Investments