Aetna 2014 Annual Report Download - page 97
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Annual Report- Page 91
Completed Disposition
In connection with the acquisition of Coventry, on March 31, 2013, we completed the sale of Missouri Care to
WellCare Health Plans, Inc. The sale price was not material, and the transaction did not have a material impact on
our financial condition or operating results.
4. Earnings Per Common Share
Basic earnings per share (“EPS”) is computed by dividing net income attributable to Aetna by the weighted average
number of common shares outstanding during the reporting period. Diluted EPS is computed in a similar manner,
except that the weighted average number of common shares outstanding is adjusted for the dilutive effects of our
outstanding stock-based compensation awards, but only if the effect is dilutive.
The computations of basic and diluted EPS for 2014, 2013 and 2012 are as follows:
(Millions, except per common share data) 2014 2013 2012
Net income attributable to Aetna $ 2,040.8 $ 1,913.6 $ 1,657.9
Weighted average shares used to compute basic EPS 355.5 355.4 340.1
Dilutive effect of outstanding stock-based compensation awards 3.6 3.8 4.9
Weighted average shares used to compute diluted EPS 359.1 359.2 345.0
Basic EPS $ 5.74 $ 5.38 $ 4.87
Diluted EPS $ 5.68 $ 5.33 $ 4.81
The stock-based compensation awards excluded from the calculation of diluted EPS for 2014, 2013 and 2012 are as
follows:
(Millions) 2014 2013 2012
Stock appreciation rights (“SARs”) (1) .3 1.7 8.3
Other stock-based compensation awards (2) 1.2 1.8 .7
(1) SARs are excluded from the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common
shares during the period (i.e., the awards are anti-dilutive).
(2) Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock
appreciation rights ("PSARs") are excluded from the calculation of diluted EPS if all necessary performance conditions have not been
satisfied at the end of the reporting period (refer to Note 12 beginning on page 117 for additional information about PSARs).
All outstanding stock options were included in the calculation of diluted EPS for 2014 and 2013, and the stock
options not included in the calculation of diluted EPS for 2012 were not material.
In connection with the May 7, 2013 acquisition of Coventry, we issued approximately 52.2 million Aetna common
shares in exchange for all the outstanding shares of Coventry common stock. Those Aetna common shares were
outstanding, net of any subsequent share repurchases, and included in the calculation of weighted average shares
used to compute basic EPS for the entire year ended December 31, 2014 and from the Acquisition Date through
December 31, 2013 for the year ended December 31, 2013, and weighted accordingly.