Humana 2009 Annual Report Download - page 107

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
which resulted in an increase in the fair value of shares vested from 2007 to 2008. Total compensation expense
not yet recognized related to nonvested restricted stock awards was $42.9 million at December 31, 2009. We
expect to recognize this compensation expense over a weighted-average period of approximately 1.7 years. There
are no other contractual terms covering restricted stock awards once vested.
In addition to restricted stock awards, we granted 36,746 restricted stock units to directors in 2009 with a
weighted-average grant date fair value of $33.95. As of December 31, 2009, 102,728 restricted stock units were
outstanding, primarily associated with director compensation.
14. EARNINGS PER COMMON SHARE COMPUTATION
Detail supporting the computation of basic and diluted earnings per common share was as follows for the
years ended December 31, 2009, 2008 and 2007:
2009 2008 2007
(in thousands, except per share results)
Net income available for common stockholders .... $1,039,675 $647,154 $833,684
Weighted-average outstanding shares of common
stock used to compute basic earnings per
common share ............................ 167,364 167,172 166,871
Dilutive effect of:
Employee stock options .................. 677 1,173 2,251
Restricted stock ......................... 1,030 842 698
Shares used to compute diluted earnings per
common share ............................ 169,071 169,187 169,820
Basic earnings per common share ............... $ 6.21 $ 3.87 $ 5.00
Diluted earnings per common share ............. $ 6.15 $ 3.83 $ 4.91
Restricted stock and stock options to purchase 5,675,241 shares in 2009, 3,243,933 shares in 2008, and
1,017,381 shares in 2007 were anti-dilutive and, therefore, were not included in the computations of diluted
earnings per common share.
15. STOCKHOLDERS’ EQUITY
On February 22, 2008, the Board of Directors authorized the repurchase of up to $150 million of our
common shares exclusive of shares repurchased in connection with employee stock plans. During the year ended
December 31, 2008, we repurchased 2.1 million shares in open market transactions for $92.8 million at an
average price of $44.19. On July 28, 2008 (announced August 4, 2008), the Board of Directors increased the
authorized amount to $250 million, excluding the $92.8 million used prior to that time in connection with the
initial February 2008 authorization. No shares were repurchased in 2008 or 2009 under the July 2008
authorization. The July authorization was set to expire on December 31, 2009. On December 10, 2009
(announced December 11, 2009), the Board of Directors renewed its $250 million authorization through
December 31, 2011. Under this authorized share repurchase program, shares may be purchased from time to time
at prevailing prices in the open market, by block purchases, or in privately-negotiated transactions, subject to
certain restrictions on volume, pricing and timing. We have not yet repurchased any shares under the December
2009 authorization.
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