Health Net 2011 Annual Report Download - page 139

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of RSU and PSU activity under our various plans as of December 31, 2011, and changes during
the year then ended is presented below:
Number of
Restricted
Stock Units
and
Performance
Share Units
Weighted
Average
Grant-Date
Fair Value
Weighted
Average
Purchase
Price
Weighted Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic Value
Outstanding at January 1, 2011 ......... 2,194,172 $29.83 $0.001
Granted ............................ 895,924 30.65 0.001
Vested ............................. (487,624) 34.41 0.001
Forfeited ........................... (392,166) 41.07 0.001
Outstanding at December 31, 2011 ...... 2,210,306 $26.56 0.001 8.03 $67,237,056
Expected to vest at December 31, 2011
(reflecting estimated forfeiture rates
effective in 2011) .................. 2,054,902 $26.55 $0.001 7.99 $62,509,675
The fair values of restricted common stock, RSUs and PSUs are determined based on the market value of
the shares on the date of grant.
The weighted-average grant-date fair values and aggregate intrinsic values of RSUs and PSUs vested during
the years ended December 31, are as follows:
2011 2010 2009
Weighted-average grant-date fair values of RSUs and PSUs ...... $30.65 $23.10 $16.81
Aggregate intrinsic value of RSUs and PSUs vested (in millions) . . $ 14.7 $ 18.0 $ 4.5
Share-based compensation expense recorded for the years ended December 31, are as follows:
2011 2010 2009
(Amounts in millions)
Compensation expense - options ................................... $ 6.2 $ 6.3 $2.9
Compensation expense - RSUs and PSUs ............................ $21.4 $26.8 $8.8
As of December 31, 2011, the remaining unrecognized compensation costs and the respective weighted-
average recognition periods are as follows:
Non-vested Options
Non-vested RSUs &
PSUs
Remaining unrecognized compensation cost (in millions) .... $10.7 $34.9
Remaining weighted-average period (in years) ............ 1.13 0.77
Under the 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, the Company has 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. During the year ended
December 31, 2011, we withheld 0.8 million shares of common stock to satisfy tax withholding and exercise
price obligations arising from stock option exercises and the vesting of RSUs.
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