United Healthcare 2014 Annual Report Download - page 48

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LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES
Liquidity
Introduction
We manage our liquidity and financial position in the context of our overall business strategy. We continually
forecast and manage our cash, investments, working capital balances and capital structure to meet the short-term
and long-term obligations of our businesses while seeking to maintain liquidity and financial flexibility. Cash
flows generated from operating activities are principally from earnings before noncash expenses.
Our regulated subsidiaries generate significant cash flows from operations and are subject to financial regulations
and standards in their respective jurisdictions. These standards, among other things, require these subsidiaries to
maintain specified levels of statutory capital, as defined by each jurisdiction, and restrict the timing and amount
of dividends and other distributions that may be paid to their parent companies.
In 2014, our U.S. regulated subsidiaries paid their parent companies dividends of $4.6 billion. For the twelve
months ended December 31, 2013, our U.S. regulated subsidiaries paid their parent companies dividends of $3.2
billion. See Note 10 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial
Statements” for further detail concerning our regulated subsidiary dividends.
Our nonregulated businesses also generate cash flows from operations that are available for general corporate
use. Cash flows generated by these entities, combined with dividends from our regulated entities and financing
through the issuance of long-term debt as well as issuance of commercial paper or the ability to draw under our
committed credit facilities, further strengthen our operating and financial flexibility. We use these cash flows to
expand our businesses through acquisitions, reinvest in our businesses through capital expenditures, repay debt,
and return capital to our shareholders through shareholder dividends and/or repurchases of our common stock,
depending on market conditions.
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