Aetna 2008 Annual Report Download - page 76

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At December 31, 2008 and 2007, we had $216 million and $100 million of commercial paper outstanding
respectively, with a weighted average interest rate of 5.36% and 5.44%, respectively. In addition, at December
31, 2007, certain of our subsidiaries had $31 million outstanding at an interest rate of 5.19% under a one-year $45
million short term credit program with a bank to provide short-term liquidity to those subsidiaries. This program
was terminated in December 2008.
We paid $228 million, $178 million and $159 million in interest in 2008, 2007 and 2006, respectively.
At December 31, 2008, we had an unsecured $1.5 billion revolving credit agreement (the “Facility”) with several
financial institutions which terminates in March 2013. The Facility provides for the issuance of letters of credit at
our request, up to $200 million, which count as usage of the available commitments under the Facility. Upon our
agreement with one or more financial institutions, we may expand the aggregate commitments under the Facility to
a maximum of $2.0 billion. Various interest rate options are available under the Facility. Any revolving borrowings
mature on the termination date of the Facility. We pay facility fees on the Facility ranging from .045% to .175% per
annum, depending upon our long-term senior unsecured debt rating. The facility fee was .06% at December 31,
2008. The Facility contains a financial covenant that requires us to maintain a ratio of total debt to consolidated
capitalization as of the end of each fiscal quarter ending on or after December 31, 2007 at or below .5 to 1.0. For
this purpose, consolidated capitalization equals the sum of shareholders’ equity, excluding any overfunded or
underfunded status of our pension and OPEB plans in accordance with FAS 158 and any net unrealized capital gains
and losses, and total debt (as defined in the Facility). We met this requirement at December 31, 2008.
14. Capital Stock
From time to time, the Board authorizes us to repurchase our common stock. Our activity under Board authorized
share repurchase programs in 2008, 2007 and 2006 was as follows:
(Millions)
Purchase
Not to
Exceed Shares Cost Shares Cost Shares Cost
Authorization date:
June 27, 2008 750.0$ 5.8 135.8$ - -$ - -$
February 29, 2008 750.0 17.4 750.0 - - - -
September 28, 2007 1,250.0 19.7 901.9 6.1 348.1 - -
April 27, 2007 750.0 - - 15.0 750.0 - -
September 29, 2006 750.0 - - 12.1 570.9 4.2 179.1
April 28, 2006 820.0 - - - - 21.7 820.0
January 27, 2006 750.0 - - - - 20.4 750.0
September 29, 2005 750.0 - - - - 14.0 580.9
Total repurchases N/A 42.9 1,787.7$ 33.2 1,669.0$ 60.3 2,330.0$
Repurchase authorization remaining at December 31, N/A 614.2$ N/A 901.9$ N/A 570.9$
Shares Purchased
20062008 2007
On February 27, 2009, the Board authorized an additional $750 million share repurchase program which will
commence upon the completion of the June 27, 2008 authorization.
On September 26, 2008, the Board declared an annual cash dividend of $.04 per common share to shareholders of
record at the close of business on November 13, 2008. The $18 million dividend was paid on November 28, 2008.
In addition to the capital stock disclosed on our balance sheets, we have authorized 7.6 million shares of Class A
voting preferred stock, $.01 par value per share. At December 31, 2008, there were also 241 million undesignated
shares that the Board has the power to divide into such classes and series, with such voting rights, designations,
preferences, limitations and special rights as the Board determines.
Annual Report - Page 71