Aetna 2013 Annual Report Download - page 26

Annual Report- Page 20
Dividends
Prior to February 2011, our policy had been to pay an annual dividend of $.04 per share. In February 2011, we
announced that our Board increased our cash dividend to shareholders to $.15 per share and moved us to a quarterly
dividend payment cycle. In December 2011, our Board increased our quarterly cash dividend to shareholders to
$.175 per share. In November 2012, our Board increased our quarterly cash dividend to shareholders to $.20 per
share. In December 2013, our Board increased our quarterly cash dividend to shareholders to $.225 per share. On
February 28, 2014, our Board declared a cash dividend of $.225 per share that will be paid on April 25, 2014 to
shareholders of record at the close of business on April 10, 2014. During 2013 and 2012, our Board declared the
following cash dividends:
Dividend Amount Stockholders of Date Paid/ Total Dividends
Date Declared Per Share Record Date To be Paid (Millions)
February 24, 2012 $ .175 April 12, 2012 April 27, 2012 $ 60.8
May 18, 2012 .175 July 12, 2012 July 27, 2012 58.5
September 28, 2012 .175 October 11, 2012 October 26, 2012 58.6
November 30, 2012 .20 January 10, 2013 January 25, 2013 65.5
February 19, 2013 .20 April 11, 2013 April 26, 2013 65.3
May 17, 2013 .20 July 11, 2013 July 26, 2013 74.4
September 27, 2013 .20 October 10, 2013 October 25, 2013 73.5
December 6, 2013 .225 January 16, 2014 January 31, 2014 81.4
Declaration and payment of future dividends is at the discretion of our Board and may be adjusted as business needs
or market conditions change.
Revolving Credit Facility
On March 27, 2012, we entered into an unsecured $1.5 billion five-year revolving credit agreement (the “Credit
Agreement”) with several financial institutions. On September 24, 2012, in connection with the acquisition of
Coventry, we entered into a First Amendment (the “First Amendment”) to the Credit Agreement and also entered
into an Incremental Commitment Agreement (the “Incremental Commitment”, and together with the First
Amendment and the Credit Agreement, resulting in the “Facility”). The Facility is an unsecured $2.0 billion
revolving credit agreement. Upon our agreement with one or more financial institutions, we may expand the
aggregate commitments under the Facility to a maximum of $2.5 billion. The Facility also provides for the issuance
of up to $200 million of letters of credit at our request, which count as usage of the available commitments under
the Facility. On March 27, 2013, the maturity date of the Facility was extended by one year to March 27, 2018.
Various interest rate options are available under the Facility. Any revolving borrowings mature on the termination
date of the Facility. We pay facility fees on the Facility ranging from .070% to .150% per annum, depending upon
our long-term senior unsecured debt rating. The facility fee was .100% at December 31, 2013. The Facility
contains a financial covenant that requires us to maintain a ratio of total debt to consolidated capitalization as of the
end of each fiscal quarter at or below 50%. For this purpose, consolidated capitalization equals the sum of total
shareholders’ equity, excluding any overfunded or underfunded status of our pension and OPEB plans and any net
unrealized capital gains and losses, and total debt (as defined in the Facility). We met this requirement at December
31, 2013. There were no amounts outstanding under the Facility at any time during the year ended December 31,
2013 or 2012.
Other Liquidity Information
From time to time, we use short-term commercial paper borrowings to address timing differences between cash
receipts and disbursements. At December 31, 2013 and 2012, we did not have any commercial paper outstanding.
The maximum amount of commercial paper borrowings outstanding during 2013 was $700 million issued to
finance a portion of the cash purchase price for the Coventry acquisition.