Aetna 2013 Annual Report Download - page 130

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Annual Report- Page 124
RSU, MSU and PSU transactions in 2013, 2012 and 2011 were as follows (number of units in millions):
2013 2012 2011
RSUs,
MSUs
and PSUs
Weighted
Average
Grant Date
Fair Value
RSUs,
MSUs
and PSUs
Weighted
Average
Grant Date
Fair Value
RSUs,
MSUs
and PSUs
Weighted
Average
Grant Date
Fair Value
RSUs, MSUs and PSUs at beginning of year 3.4 $ 43.25 6.7 $ 33.62 5.0 $ 31.16
Granted 3.6 51.22 4.6 43.71 3.9 37.43
Vested (1.3) 41.56 (7.7) 34.69 (1.3) 33.34
Forfeited (.4) 46.65 (.2) 37.37 (.9) 33.65
RSUs, MSUs and PSUs at end of year 5.3 $ 48.82 3.4 $ 43.25 6.7 $ 33.62
In 2013, we granted PSARs and estimated the fair value of those PSARs using a Monte Carlo simulation. The
PSARs granted in 2013 had a grant date per PSAR fair value of $18.64. That grant date fair value was calculated
using the assumptions noted in the following table:
Dividend yield 1.25%
Expected settlement period (in years) 6.12
Historical volatility 40.4%
Risk-free interest rate .6%
Initial price $ 64.25
During 2013, 2012 and 2011, the following activity occurred under the Plans:
(Millions) 2013 2012 2011
Cash received from stock option exercises $ 89.1 $ 89.8 $ 150.4
Intrinsic value of options/SARs exercised and stock units vested 292.0 492.5 280.7
Tax benefits realized for the tax deductions from stock options and SARs exercised and stock units vested 98.9 172.4 98.2
Fair value of stock options, SARs and stock units vested (1) 52.1 273.4 98.5
(1) The fair value represents the total dollar value of the stock options, SARs and stock units as of the respective grant dates.
We settle our stock options, SARs, PSARs and stock units with newly-issued common stock and generally utilize
the proceeds from stock options to repurchase our common stock in the open market in the same period.
In 2013, 2012 and 2011 we recorded share-based compensation expense of $127 million, $122 million and $141
million, respectively, in general and administrative expenses. We also recorded related tax benefits of $35 million,
$32 million and $47 million in 2013, 2012 and 2011, respectively. At December 31, 2013, $154 million of total
unrecognized compensation costs related to stock options, SARs, PSARs and stock units is expected to be
recognized over a weighted-average period of 1.8 years.