United Healthcare 2005 Annual Report Download - page 59

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Common Stock Split
In May 2005, our board of directors declared a two-for-one stock split. The stock split was effective on May 27,
2005 for shareholders of record on May 20, 2005. All share and per share amounts have been restated to reflect
the stock split.
Preferred Stock
At December 31, 2005, we had 10 million shares of $0.001 par value preferred stock authorized for issuance, and
no preferred shares issued and outstanding.
9. Stock-Based Compensation Plans
As of December 31, 2005, we had approximately 96.9 million shares available for future grants of stock-based
awards under our stock-based compensation plan including, but not limited to, incentive or non-qualified stock
options, stock appreciation rights and restricted stock.
Stock options are granted at an exercise price not less than the fair value of our common stock on the date of
grant. They generally vest ratably over four years and may be exercised up to 10 years from the date of grant.
Activity under our stock-based compensation plan is summarized in the tables below (shares in millions):
2005 2004 2003
Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Outstanding at Beginning of Year ................ 176.3 $ 18 174.6 $ 14 172.8 $ 11
Granted ..................................... 26.2 $ 51 34.1 $ 36 36.9 $ 22
Assumed in Acquisitions ....................... 10.9 $ 16 15.2 $ 17 — $ —
Exercised .................................... (23.6) $ 15 (43.5) $ 12 (30.7) $ 8
Forfeited .................................... (3.0) $ 28 (4.1) $ 18 (4.4) $ 15
Outstanding at End of Year ...................... 186.8 $ 23 176.3 $ 19 174.6 $ 14
Exercisable at End of Year ...................... 110.7 $ 14 89.6 $ 11 85.4 $ 8
As of December 31, 2005 Options Outstanding Options Exercisable
Range of Exercise Prices
Number
Outstanding
Weighted-
Average
Remaining
Option Term
(years)
Weighted-
Average
Exercise
Price
Number
Exercisable
Weighted-
Average
Exercise
Price
$ 0-$10 .................................. 49.7 3.7 $ 6 49.5 $ 6
$11-$20 .................................. 50.9 6.1 $ 17 35.1 $ 16
$21-$40 .................................. 58.9 7.8 $ 30 24.8 $ 27
$41-$65 .................................. 27.3 9.5 $ 50 1.3 $ 46
$ 0-$65 .................................. 186.8 6.5 $ 23 110.7 $ 14
We also maintain a 401(k) plan and an employee stock purchase plan. Activity related to these plans was not
significant in relation to our consolidated financial results in 2005, 2004 and 2003.
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