United Healthcare 2014 Annual Report Download - page 61

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We have an exposure to changes in the value of the Brazilian real to the U.S. dollar in translation of Amil’s
operating results at the average exchange rate over the accounting period, and Amil’s assets and liabilities at the
spot rate at the end of the accounting period. The gains or losses resulting from translating foreign assets and
liabilities into U.S. dollars are included in shareholders’ equity and comprehensive income.
An appreciation of the U.S. dollar against the Brazilian real reduces the carrying value of the net assets
denominated in Brazilian real. For example, as of December 31, 2014, a hypothetical 10% and 20% increase in
the value of the U.S. dollar against the Brazilian real would have caused a reduction in net assets of
approximately $430 million and $790 million, respectively. We manage exposure to foreign currency risk by
conducting our international business operations primarily in their functional currencies.
As of December 31, 2014, we had $1.5 billion of investments in equity securities, consisting of investments in
non-U.S. dollar fixed-income funds; employee savings plan related investments; venture capital funds; and
dividend paying stocks. Valuations in non-U.S. dollar funds are subject to foreign exchange rates. Valuations in
venture capital funds are subject to conditions affecting health care and technology stocks, and dividend paying
equities are subject to more general market conditions.
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