Health Net 2013 Annual Report Download - page 143

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-39
and PSU, holders will have the right to receive one share of common stock. Awards of stock options, RSUs and PSUs
are subject to restrictions on transfer and forfeiture prior to vesting. The following table presents the number of stock
options, RSUs and PSUs granted during the years ended December 31:
2013 2012 2011
Options granted................................................ — — 661,950
RSUs and PSUs granted .................................. 1,143,881 1,084,532 895,294
A summary of RSU and PSU activity under our various plans as of December 31, 2013, 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, 2013 ........... 1,937,670 $ 33.13 $0.001
Granted ................................................ 1,143,881 27.38 0.001
Vested.................................................. (678,854) 29.43 0.001
Forfeited .............................................. (563,925) 37.58 0.001
Outstanding at December 31, 2013 ..... 1,838,772 $ 29.54 0.001 1.65 $ 54,554,846
Expected to vest at December 31,
2013 (reflecting estimated forfeiture
rates effective in 2013)........................ 1,642,366 $ 29.53 $0.001 1.68 $ 48,727,404
The fair values of RSUs and PSUs are determined based on the market value of the underlying shares of common
stock 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:
2013 2012 2011
Weighted-average grant-date fair values of RSUs and PSUs vested....... $ 29.43 $ 38.22 $ 30.65
Aggregate intrinsic value of RSUs and PSUs vested (in millions) ......... $ 18.5 $ 49.0 $ 14.7
Share-based compensation expense recorded for the years ended December 31, is as follows:
2013 2012 2011
(Amounts in millions)
Compensation expense - options....................................................... $ 3.7 $ 5.4 $ 6.2
Compensation expense - RSUs and PSUs......................................... $ 26.2 $ 23.5 $ 21.4