Health Net 2013 Annual Report Download - page 142

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-38
The following table provides the weighted-average values of assumptions used in the calculation of grant-date
fair values, the weighted-average grant-date fair values for options, and the total intrinsic value of options exercised
during the years ended December 31:
2013 (a) 2012 (a) 2011
Risk-free interest rate .................................................. None None 2.36%
Expected option lives (in years) .................................. None None 5.1
Expected volatility for options .................................... None None 35.6%
Expected dividend yield .............................................. None None None
Weighted-average grant-date fair value of options...... None None $10.88
Total intrinsic value of options exercised.................... $ 3,138,634 $ 7,418,459 $ 7,934,673
__________
(a) During the years ended December 31, 2013 and 2012, we made no grants of stock options.
A summary of option activity under our various plans as of December 31, 2013, and changes during the year then
ended is presented below:
Number of
Options
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Term
(Years) Aggregate
Intrinsic Value
Outstanding at January 1, 2013 ................... 4,281,733 $30.19
Granted ........................................................ — —
Exercised ..................................................... (818,527) 24.52
Forfeited or expired..................................... (149,850) 35.93
Outstanding at December 31, 2013 ............. 3,313,356 $31.33 2.66 $ 9,891,298
Vested or expected to vest at December 31,
2013 (reflecting estimated forfeiture
rates effective in 2013) ........................... 3,292,080 $31.34 2.65 $ 9,881,448
Exercisable at December 31, 2013.............. 3,102,963 $31.39 2.56 $ 9,846,565
Options Outstanding Options Exercisable
Range of
Exercise Prices
Number of
Options
Weighted Average
Remaining
Contractual Life
(Years)
Weighted Average
Exercise Price
Number of
Options
Weighted Average
Exercise Price
$15.30 – 20.00......... 147,466 2.51 $15.41 147,466 $15.41
20.01 – 25.00......... 1,134,346 2.57 23.18 1,129,621 23.18
25.01 – 30.00......... 451,786 1.81 28.72 444,662 28.75
30.01 – 40.00......... 839,933 3.34 31.71 641,389 31.99
40.01 – 50.00......... 590,312 2.37 46.64 590,312 46.64
50.01 – 58.07......... 149,513 3.32 54.20 149,513 54.20
$15.30 – 58.07......... 3,313,356 2.66 $31.33 3,102,963 $31.39
We have entered into stock option and RSU agreements with certain employees and non-employee directors and
PSU agreements with certain employees. Upon vesting and exercise of each stock option and upon vesting of each RSU