Health Net 2010 Annual Report Download - page 56

Stock Repurchase Program
We completed our $700 million stock repurchase program (the “Completed Stock Repurchase Program”) in
February 2010. During the three months ended March 31, 2010, we repurchased 3,258,795 shares of our common
stock for aggregate consideration of approximately $79.4 million under our Completed Stock Repurchase
Program. On March 18, 2010, our Board of Directors authorized a new $300 million stock repurchase program
(the “New Stock Repurchase Program”). As of January 31, 2011, we had repurchased 7,087,477 shares of our
common stock for aggregate consideration of approximately $184.5 million under our New Stock Repurchase
Program. The remaining authorization under our New Stock Repurchase Program as of January 31, 2011 was
$115.5 million.
As of December 31, 2010, we had repurchased a cumulative aggregate of 46,618,636 shares of our common
stock under our stock repurchase programs at an average price of $32.39 per share for aggregate consideration of
$1.5 billion. We used net free cash available, including proceeds from the Northeast Sale and cash at Health Net,
Inc., to fund the share repurchases. For additional information on our stock repurchase programs, see Note 9 to
our consolidated financial statements.
Under our various stock option and long-term incentive plans, employees and non-employee directors may
elect for the Company to withhold shares to satisfy minimum statutory federal, state and local tax withholding
and/or exercise price obligations, as applicable, arising from the exercise of stock options. For certain other
equity awards, we have the right to withhold shares to satisfy any tax obligations that may be required to be
withheld or paid in connection with such equity award, including any tax obligation arising on the vesting date.
These repurchases were not part of either of our stock repurchase programs.
The following table presents monthly information related to repurchases of our common stock, including
shares withheld by the Company to satisfy tax withholdings and exercise price obligations in 2010, as of
December 31, 2010:
Period
Total Number
of Shares
Purchased (a)
Average
Price Paid
per Share
Total
Price Paid
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Programs (b) (c)
Maximum
Number (or
Approximate
Dollar Value) of
Shares (or Units)
that May Yet Be
Purchased Under
the Programs (b) (c)
January 1—January 31 ........... 1,860,658 $25.11 $ 46,718,458 1,860,658 $ 36,009,731
February 1—February 28 ......... 1,574,703(d) 23.37 36,793,907 1,398,137 $ 3,349,489
March 1—March 31 ............. 124,618(d) 24.55 3,058,783 71,990 $298,208,500
April 1—April 30 ............... 947,024(d) 23.00 21,777,457 874,361 $278,082,672
May 1—May 31 ................ 901,852(d) 23.09 20,827,267 901,500 $257,263,326
June 1—June 30 ................ 1,105,292(d) 26.42 29,205,453 1,105,000 $228,065,155
July 1—July 31 ................. 1,468(d) 24.77 36,362 — $228,065,155
August 1—August 31 ............ 30,305(d) 26.07 789,965 30,000 $227,282,476
September 1—September 30 ....... 692,900 26.85 18,604,146 692,900 $208,678,330
October 1—October 31 ........... 1,191,720(d) 26.46 31,537,647 1,186,206 $177,282,477
November 1—November 30 ....... 45(d) 28.21 1,269 — $177,282,477
December 1—December 31 ....... 1,021,871(d) 27.10 27,691,371 1,013,800 $149,805,950
9,452,456(d) $25.08 $237,042,085 9,134,552
(a) During the twelve months ended December 31, 2010, we did not repurchase any shares of our common
stock outside our publicly announced stock repurchase programs, except shares withheld in connection with
our various stock option and long-term incentive plans.
(b) On March 18, 2010, our Board of Directors authorized our New Stock Repurchase Program, pursuant to
which a total of $300 million of our common stock can be repurchased. Our Completed Stock Repurchase
Program, which had $3.3 million in remaining repurchase authority as of February 22, 2010, was deemed to
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