Health Net 2014 Annual Report Download - page 152

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-42
A summary of RSU and PSU activity under our various plans as of December 31, 2014, 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, 2014 ........... 1,838,772 $ 29.54 $—
Granted ................................................ 881,338 32.25 —
Vested.................................................. (907,072) 29.68 —
Forfeited .............................................. (88,743) 30.21 —
Outstanding at December 31, 2014 ..... 1,724,295 $ 30.82 — 0.87 $ 92,301,511
Expected to vest at December 31,
2014 (reflecting estimated forfeiture
rates effective in 2014)........................ 1,649,410 $ 30.84 $— 0.91 $ 88,292,899
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:
2014 2013 2012
Weighted-average grant-date fair values of RSUs and PSUs vested....... $ 29.68 $ 29.43 $ 38.22
Aggregate intrinsic value of RSUs and PSUs vested (in millions) ......... $ 30.5 $ 18.5 $ 49.0
Share-based compensation expense recorded for the years ended December 31, is as follows:
2014 2013 2012
(Amounts in millions)
Compensation expense - options....................................................... $ 0.6 $ 3.7 $ 5.4
Compensation expense - RSUs and PSUs......................................... $ 27.7 $ 26.2 $ 23.5
As of December 31, 2014, the remaining unrecognized compensation costs and the respective weighted-average
recognition periods are as follows:
Non-vested Options Non-vested RSUs &
PSUs
Remaining unrecognized compensation cost (in thousands)................... $ 28 $ 32,321
Remaining weighted-average period (in years)....................................... 0.23 0.93
Under the Plans, employees and non-employee directors may elect for the Company to withhold shares to satisfy
minimum statutory federal, state and local tax withholding and/or exercise price obligations, as applicable, arising from
the exercise of stock options. For certain other equity awards, the Company has the right to withhold shares to satisfy
any tax obligations that may be required to be withheld or paid in connection with such equity award, including any tax
obligation arising on the vesting date. During the year ended December 31, 2014, we withheld 0.7 million shares of
common stock to satisfy tax withholding and exercise price obligations arising from stock option exercises and the
vesting of RSUs and PSUs.