Aetna 2014 Annual Report Download - page 127

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Annual Report- Page 121
During 2014, 2013 and 2012, the following activity occurred under the Plans:
(Millions) 2014 2013 2012
Cash received from stock option exercises $ 32.4 $ 89.1 $ 89.8
Intrinsic value of options/SARs exercised and stock units vested 322.8 292.0 492.5
Tax benefits realized for the tax deductions from stock options and SARs exercised and stock units vested 87.1 98.9 172.4
Fair value of stock options, SARs and stock units vested (1) 106.7 52.1 273.4
(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 2014, 2013 and 2012 we recorded share-based compensation expense of $164 million, $127 million and $122
million, respectively, in general and administrative expenses. We also recorded related tax benefits of $37 million,
$35 million and $32 million in 2014, 2013 and 2012, respectively. At December 31, 2014, $174 million of total
unrecognized compensation costs related to SARs, PSARs and stock units is expected to be recognized over a
weighted-average period of 1.7 years.
13. Income Taxes
The components of our income tax provision in 2014, 2013 and 2012 were as follows:
(Millions) 2014 2013 2012
Current taxes:
Federal $ 1,233.0 $ 901.9 $ 731.5
State 84.0 55.7 48.4
Total current taxes 1,317.0 957.6 779.9
Deferred taxes (benefits):
Federal 114.1 63.0 112.8
State 23.6 8.0 (5.2)
Total deferred income taxes 137.7 71.0 107.6
Total income taxes $ 1,454.7 $ 1,028.6 $ 887.5
Income taxes were different from the amount computed by applying the statutory federal income tax rate to income
before income taxes as follows:
(Millions) 2014 2013 2012
Income before income taxes $ 3,499.9 $ 2,940.5 $ 2,547.3
Tax rate 35% 35% 35%
Application of the tax rate 1,225.0 1,029.2 891.6
Tax effect of:
Health insurer fee 211.9 — —
State income taxes 78.2 44.2 26.3
Other, net (60.4) (44.8) (30.4)
Income taxes $ 1,454.7 $ 1,028.6 $ 887.5