Aetna 2015 Annual Report Download - page 107
Download and view the complete annual report
Please find page 107 of the 2015 Aetna annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
 |
 |
Annual Report- Page 101
The stock-based compensation awards excluded from the calculation of diluted EPS for 2015, 2014 and 2013 are as
follows:
(Millions) 2015 2014 2013
Stock appreciation rights ("SARs") (1) .5 .3 1.7
Other stock-based compensation awards (2) .8 1.2 1.8
(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 13 beginning on page 126 for additional information about PSARs).
All outstanding stock options were included in the calculation of diluted EPS for 2014 and 2013. There were no
stock options outstanding at December 31, 2015.
In connection with the May 7, 2013 acquisition of Coventry, we issued 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 each of the years in the two-year period ended December 31, 2015 and from the Coventry
Acquisition Date through December 31, 2013 for the year ended December 31, 2013, and weighted accordingly.
5. Operating Expenses
For 2015, 2014 and 2013, selling expenses (which include broker commissions, the variable component of our
internal sales force compensation and premium taxes) and general and administrative expenses were as follows:
(Millions) 2015 2014 2013
Selling expenses $ 1,611.1 $ 1,653.0 $ 1,348.6
General and administrative expenses:
Salaries and related benefits 4,995.4 4,691.3 4,139.5
Other general and administrative expenses (1) 5,042.8 4,493.4 3,157.3
Total general and administrative expenses 10,038.2 9,184.7 7,296.8
Total operating expenses $ 11,649.3 $ 10,837.7 $ 8,645.4
(1) In 2015 and 2014, includes fees mandated by the ACA comprised primarily of the HIF of $856.8 million and $605.3 million,
respectively, and our estimated contribution to the funding of the reinsurance program of $210.0 million and $335.5 million,
respectively. Refer to Note 2 beginning on page 88 for additional information on fees mandated by the ACA.