Humana 2014 Annual Report Download - page 87

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79
Increase (decrease) in
pretax earnings given an
interest rate decrease of
X basis points
Increase (decrease) in
pretax earnings given an
interest rate increase of
X basis points
(300) (200) (100) 100 200 300
(in millions)
As of December 31, 2014
Investment income (a) $ (20) $ (15) $ (9) $ 42 $ 85 $ 128
Interest expense (b) — — — — — —
Pretax $ (20) $ (15) $ (9) $ 42 $ 85 $ 128
As of December 31, 2013
Investment income (a) $ (24) $ (16) $ (8) $ 26 $ 52 $ 79
Interest expense (b) — — — — — —
Pretax $ (24) $ (16) $ (8) $ 26 $ 52 $ 79
(a) As of December 31, 2014 and 2013, some of our investments had interest rates below 3% so the assumed
hypothetical change in pretax earnings does not reflect the full 3% point reduction.
(b) The interest rate under our senior notes is fixed. There were no borrowings outstanding under the credit agreement
at December 31, 2014 or December 31, 2013 or under our commercial paper program (commenced in October
2014) at December 31, 2014.