Humana 2012 Annual Report Download - page 77

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 Repurchase Authorization
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 the current authorization for repurchases of up to $1
billion of our common shares exclusive of shares repurchased in connection with employee stock plans. The
current authorization will expire June 30, 2014. Under this share repurchase authorization, 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 regulatory restrictions on volume, pricing, and timing. As of
February 1, 2013, the remaining authorized amount under the current authorization totaled $640 million.
Senior Notes
In December 2012, we issued $600 million of 3.15% senior notes due December 1, 2022 and $400 million
of 4.625% senior notes due December 1, 2042. Our net proceeds, reduced for the discount and cost of the
offering, were $990 million. We used the proceeds from the offering primarily to finance the acquisition of
Metropolitan, including the retirement of Metropolitan’s indebtedness, and to pay related fees and expenses. We
previously issued $500 million of 6.45% senior notes due June 1, 2016, $500 million of 7.20% senior notes due
June 15, 2018, $300 million of 6.30% senior notes due August 1, 2018, and $250 million of 8.15% senior notes
due June 15, 2038. The 7.20% and 8.15% senior notes are subject to an interest rate adjustment if the debt ratings
assigned to the notes are downgraded (or subsequently upgraded). In addition, our 7.20%, 8.15%, 3.15%, and
4.625% senior notes contain a change of control provision that may require us to purchase the notes under certain
circumstances. All six series of our senior notes, which are unsecured, may be redeemed at our option at any time
at 100% of the principal amount plus accrued interest and a specified make-whole amount. Our senior notes are
more fully discussed in Note 11 to the consolidated financial statements included in Item 8. – Financial
Statements and Supplementary Data.
Credit Agreement
Our 5-year $1.0 billion unsecured revolving agreement expires in November 2016. Under the credit
agreement, at our option, we can borrow on either a competitive advance basis or a revolving credit basis. The
revolving credit portion bears interest at either LIBOR plus a spread or the base rate plus a spread. The LIBOR
spread, currently 120 basis points, varies depending on our credit ratings ranging from 87.5 to 147.5 basis points.
We also pay an annual facility fee regardless of utilization. This facility fee, currently 17.5 basis points, may
fluctuate between 12.5 and 27.5 basis points, depending upon our credit ratings. The competitive advance portion
of any borrowings will bear interest at market rates prevailing at the time of borrowing on either a fixed rate or a
floating rate based on LIBOR, at our option.
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