Aetna 2006 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2006 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.

Page out of 102

  • 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

The stock option and SAR transactions in 2006, 2005 and 2004 were as follows:
Weighted
Weighted Average
Average Remaining Aggregate
Number of Stock Exercise Contractual Intrinsic
(Millions, except exercise price) Options and SARs
(1)
Price Life (Years) Value
2004
Outstanding, beginning of year 91.7 8.74$ 6.4 747.8$
Granted 15.3 19.47 - -
Exercised (37.7) 8.45 - 515.8
Expired or forfeited (1.7) 13.61 - -
Outstanding, end of year 67.6 11.22$ 6.6 1,350.9$
Exercisable, end of year 50.9 11.51$ 6.3 1,001.2$
2005
Outstanding, beginning of year 67.6 11.22$ 6.6 1,350.9$
Granted 8.9 33.61 - -
Exercised (21.6) 11.34 - 573.5
Expired or forfeited (1.1) 14.49 - -
Outstanding, end of year 53.8 14.78$ 6.2 1,742.2$
Exercisable, end of year 43.0 12.77$ 5.8 1,480.3$
2006
Outstanding, beginning of year 53.8 14.78$ 6.2 1,742.2$
Granted 5.5 49.84 - -
Exercised (9.5) 11.17 - 309.2
Expired or forfeited (.7) 28.72 - -
Outstanding, end of year 49.1 19.22$ 5.5 1,213.5$
Exercisable, end of year 38.8 13.27$ 4.9 1,161.3$
(1) There were no SARs transactions prior to January 1, 2006.
During 2006, 2005 and 2004, the following activity occurred under the Plans:
(Millions) 2006 2005 2004
Cash received from stock option exercises 105.8$ 253.0$ 316.0$
Intrinsic value (the excess of stock price on the date of exercise over the exercise price) 309.2 573.5 515.8
Tax benefits realized for the tax deductions from stock options exercised (1) 108.2 202.5 190.4
Fair value of stock options and SARs vested 71.0 63.5 101.9
(1) No SARs were exercised during these periods.
We settle employee stock options with newly issued common stock and generally utilize the proceeds to
repurchase common stock in the open market in the same period.
Page 73