Company: UHS
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027785
Chunk: 213

Company: UNIVERSAL HEALTH SERVICES INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1B
Chunk 213
---

          4,166

          19,437

          Income tax effect

          0

          520

          (1,000
          )

          (480
          )

          Change, net of income tax

          0

          15,791

          3,166

          18,957

          Balance, January 1, 2024, net of income tax

          (17
          )

          11,536

          (2,230
          )

          9,289

          2024 activity:

          Pretax amount

          17

          (3,237
          )

          2,416

          (804
          )

          Income tax effect

          0

          (704
          )

          (580
          )

          (1,284
          )

          Change, net of income tax

          17

          (3,941
          )

          1,836

          (2,088
          )

          Balance, December 31, 2024, net of income tax
           
          $
          —

          $
          7,595

          $
          (394
          )
           
          $
          7,201

         Accounting for Derivative Financial Investments and Hedging Activities and Foreign Currency Forward Exchange Contracts: We manage our ratio of fixed and floating rate debt with the objective of achieving a mix that management believes is appropriate. To manage this risk in a cost-effective manner, we, from time to time, enter into interest rate swap agreements in which we agree to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts. We account for our derivative and hedging activities using the Financial Accounting Standard Board’s (“FASB”) guidance which requires all derivative instruments, including certain derivative instruments embedded in other contracts, to be carried at fair value on the balance sheet. For derivative transactions designated as hedges, we formally document all relationships between the hedging instrument and the related hedged item, as well as its risk-management objective and strategy for undertaking each hedge transaction.Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheets as either an asset or liability, with a corresponding amount recorded in accumulated other comprehensive income (“AOCI”) within statements