Aetna 2006 Annual Report Download - page 76

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The following is a summary of information regarding stock options and SARs outstanding and exercisable at
December 31, 2006 (number of stock options and SARs and aggregate intrinsic values in millions):
Weighted
Average Weighted Weighted
Remaining Average Aggregate Average Aggregate
Number Contractual Exercise Intrinsic Number Exercise Intrinsic
Range of Exercise Prices Outstanding Life (Years) Price Value Exercisable Price Value
Stock options
$0.00-$5.21 1.2 2.6 4.95$ 45.9$ 1.2 4.95$ 45.9$
5.21-10.42 13.9 4.1 8.22 486.1 13.9 8.22 486.1
10.42-15.63 12.5 4.7 10.61 408.6 12.5 10.61 408.6
15.63-20.84 8.0 6.3 19.36 190.9 8.0 19.36 190.2
20.84-26.06 .3 7.3 21.92 6.3 .3 21.90 5.5
26.06-31.27 -
(1)
7.9 27.54 -
(1)
-
(1)
27.54 -
(1)
31.27-36.48 7.6 7.2 33.38 74.1 2.5 33.38 24.8
36.48-41.69 .4 8.9 39.43 1.6 .1 38.88 .2
41.69-46.90 -
(1)
8.6 42.16 -
(1)
-
(1)
42.16 -
(1)
46.90-52.11 5.2 8.0 50.20 - .3 50.21 -
$0.00-$52.11 49.1 5.5 19.22$ 1,213.5$ 38.8 13.27$ 1,161.3$
Outstanding Exercisable
(1) Amounts rounded to zero.
RSU transactions in 2006 were as follows (number of units in millions):
Weighted
Average
Grant Date
RSUs Fair Value
RSUs at beginning of year -
(1) (2)
34.18$
Granted .8 50.05
Vested -
(1)
40.29
Forfeited -
(1)
50.21
RSUs at end of year .8 49.52$
(1) Amounts rounded to zero.
(2) There were no material RSU transactions prior to January 1, 2006.
In 2006, 2005 and 2004 we recorded pretax share-based compensation expense of $74 million, $94 million and
$139 million, respectively, in general and administrative expenses. We also recorded related tax benefits of $26
million, $33 million and $49 million in 2006, 2005 and 2004, respectively. At December 31, 2006, $78 million of
total unrecognized compensation costs related to stock options, SARs and RSUs are expected to be recognized over
a weighted-average period of 1.8 years.
We also have an Employee Stock Purchase Plan (the “ESPP”). Activity related to the ESPP was not material to us
in 2006, 2005 or 2004.
Performance Units – During 2005 and 2004, we granted performance unit awards to certain executives as part of
a long-term incentive program. The value of the performance units was equal to $100. The performance units
granted in 2004 vested on December 31, 2005, and the performance units granted in 2005 vested on December 31,
2006. The number of vested performance units at December 31, 2005 and 2006 was dependent upon the degree
to which we achieved performance goals as determined by the Board’ s Committee on Compensation and
Organization (the “Compensation Committee”). In January 2007 and 2006, the Compensation Committee
determined that the 2005 and 2004 grants vested at 180.0% and 158.7% of target, respectively, and approved the
payment of the awards. The costs associated with our performance units for 2006, 2005 and 2004 were $14
million, $43 million and $17 million, respectively.
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