Humana 2012 Annual Report Download - page 126

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
14. STOCKHOLDERS’ EQUITY
Dividends
In April 2011, our Board of Directors approved the initiation of a quarterly cash dividend policy.
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 dividend payments in 2011 and 2012:
Record Date
Payment
Date
Amount
per Share
Total
Amount
(in millions)
2011 payments
6/30/2011 7/28/2011 $0.25 $41
9/30/2011 10/28/2011 $0.25 $41
2012 payments
12/30/2011 1/31/2012 $0.25 $41
3/30/2012 4/27/2012 $0.25 $41
6/29/2012 7/27/2012 $0.26 $42
9/28/2012 10/26/2012 $0.26 $41
In October 2012, the Board of Directors declared a cash dividend of $0.26 per share that was paid on
January 25, 2013, for an aggregate amount of $42 million, to stockholders of record as of the close of business on
December 31, 2012.
Stock Repurchases
In April 2012, the Board of Directors replaced its previously approved share repurchase authorization of up
to $1 billion (of which $461 million remained unused) with a new authorization for repurchases of up to $1
billion of our common shares exclusive of shares repurchased in connection with employee stock plans, expiring
on June 30, 2014. Under this share repurchase authorization, shares could be purchased from time to time at
prevailing prices in the open market, by block purchases, or in privately-negotiated transactions, subject to
certain regulatory restrictions on volume, pricing, and timing. During 2012, we repurchased 1.15 million shares
in open market transactions for $100 million at an average price of $86.95 under a previously approved share
repurchase authorization and we repurchased 5.1 million shares in open market transactions for $360 million at
an average price of $70.66 under the new authorization. During 2011, we repurchased 6.8 million shares in open
market transactions for $492 million at an average price of $72.75 under previously approved share repurchase
authorizations. During 2010, we repurchased 1.99 million shares for $100 million at an average price of $50.17
under previously approved share repurchase authorizations. As of February 1, 2013, the remaining authorized
amount under the new authorization totaled $640 million.
In connection with employee stock plans, we acquired 0.7 million common shares for $58 million in 2012,
0.8 million common shares for $49 million in 2011, and 0.2 million common shares for $8 million in 2010.
Regulatory Requirements
Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash
transfers to Humana Inc., our parent company, and require minimum levels of equity as well as limit investments
to approved securities. The amount of dividends that may be paid to Humana Inc. by these subsidiaries, without
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