Humana 2007 Annual Report Download - page 96

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The total intrinsic value of stock options exercised during 2007 was $133.9 million, compared with $133.7
million during 2006 and $57.8 million during 2005. Cash received from stock option exercises for the years
ended December 31, 2007, 2006, and 2005 totaled $62.7 million, $49.2 million, and $36.4 million, respectively.
Total compensation expense related to nonvested options not yet recognized was $23.6 million at
December 31, 2007. We expect to recognize this compensation expense over a weighted average period of
approximately 1.6 years.
Restricted Stock Awards
Restricted stock awards are granted with a fair value equal to the market price of our common stock on the
date of grant. Compensation expense is recorded straight-line over the vesting period, generally three years from
the date of grant.
The weighted average grant date fair value of our restricted stock awards was $63.59, $54.36, and $32.81
for the years ended December 31, 2007, 2006, and 2005, respectively. Activity for our restricted stock awards
was as follows for the year ended December 31, 2007:
Shares
Weighted
Average
Grant-Date
Fair Value
Nonvested restricted stock at December 31, 2006 ............. 1,107,455 $45.86
Granted .......................................... 852,353 63.59
Vested ........................................... (51,206) 56.93
Forfeited ......................................... (63,624) 49.65
Nonvested restricted stock at December 31, 2007 ............. 1,844,978 $53.61
The fair value of shares vested during the years ended December 31, 2007, 2006, and 2005 was $3.4
million, $2.3 million, and $0.6 million, respectively. Total compensation expense related to nonvested restricted
stock awards not yet recognized was $44.7 million at December 31, 2007. We expect to recognize this
compensation expense over a weighted average period of approximately 1.4 years. There are no other contractual
terms covering restricted stock awards once vested.
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