United Healthcare 2014 Annual Report Download - page 93

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2013, the Company’s regulated subsidiaries paid their parent companies dividends of $3.2 billion, including $430
million of extraordinary dividends. As of December 31, 2014, $738 million of the Company’s $7.5 billion of
cash and cash equivalents was available for general corporate use.
The Company’s regulated subsidiaries had estimated aggregate statutory capital and surplus of approximately
$14.7 billion as of December 31, 2014. The estimated statutory capital and surplus necessary to satisfy regulatory
requirements of the Company’s regulated subsidiaries was approximately $7.1 billion as of December 31, 2014.
Optum Bank must meet minimum requirements for Tier 1 leverage capital, Tier 1 risk-based capital, and Total
risk-based capital of the Federal Deposit Insurance Corporation (FDIC) to be considered “Well Capitalized”
under the capital adequacy rules to which it is subject. At December 31, 2014, the Company believes that Optum
Bank met the FDIC requirements to be considered “Well Capitalized.”
Share Repurchase Program
Under its Board of Directors’ authorization, the Company maintains a share repurchase program. The objectives
of the share repurchase program are to optimize the Company’s capital structure and cost of capital, thereby
improving returns to shareholders, as well as to offset the dilutive impact of share-based awards. Repurchases
may be made from time to time in open market purchases or other types of transactions (including prepaid or
structured share repurchase programs), subject to certain Board restrictions. In June 2014, the Board renewed the
Company’s share repurchase program with an authorization to repurchase up to 100 million shares of its common
stock. During 2014, the Company repurchased 49 million shares at an average price of $82.57 per share and an
aggregate cost of $4.0 billion.
Dividends
In June 2014, the Company’s Board of Directors increased the Company’s cash dividend to shareholders to an
annual dividend rate of $1.50 per share, paid quarterly. Since June 2013, the Company had paid an annual cash
dividend of $1.12 per share, paid quarterly. Declaration and payment of future quarterly dividends is at the
discretion of the Board and may be adjusted as business needs or market conditions change.
The following table provides details of the Company’s 2014 dividend payments:
Payment Date
Amount
per Share Total Amount Paid
(in millions)
2014 ............................................................... $1.4050 $1,362
2013 ............................................................... 1.0525 1,056
2012 ............................................................... 0.8000 820
11. Share-Based Compensation
The Company’s outstanding share-based awards consist mainly of non-qualified stock options, SARs and
restricted stock and restricted stock units (collectively, restricted shares). As of December 31, 2014, the
Company had 25 million shares available for future grants of share-based awards under its share-based
compensation plan, including, but not limited to, incentive or non-qualified stock options, SARs and awards for
11 million restricted shares. As of December 31, 2014, there were also 14 million shares of common stock
available for issuance under the ESPP.
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