Humana 2013 Annual Report Download - page 82

Future Sources and Uses of Liquidity
Dividends
The following table provides details of dividend payments in 2011, 2012, and 2013 under our Board
approved quarterly cash dividend policy:
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
2013 payments
12/31/2012 1/25/2013 $0.26 $42
3/28/2013 4/26/2013 $0.26 $41
6/28/2013 7/26/2013 $0.27 $42
9/30/2013 10/25/2013 $0.27 $42
In October 2013, the Board declared a cash dividend of $0.27 per share that was paid on January 31, 2014 to
stockholders of record on December 31, 2013, for an aggregate amount of $42 million. 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.
Stock Repurchase Authorization
In April 2013, the Board of Directors replaced its previously approved share repurchase authorization of up
to $1 billion (of which $557 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, expiring
on June 30, 2015. Under the current 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, 2014, the remaining authorized
amount under the current authorization totaled approximately $580 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.
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