Humana 2014 Annual Report Download - page 73

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6.3 million shares for $460 million in 2012 under share repurchase plans authorized by the Board of Directors. We also
acquired common shares in connection with employee stock plans for an aggregate cost of $42 million in 2014, $29
million in 2013, and $58 million in 2012.
As discussed further below, we paid dividends to stockholders of $172 million in 2014, $168 million in 2013, and
$165 million in 2012.
In September 2014, we issued $400 million of 2.625% senior notes due October 1, 2019, $600 million of 3.85%
senior notes due October 1, 2024 and $750 million of 4.95% senior notes due October 1, 2044. Our net proceeds,
reduced for the underwriters' discount and commission and offering expenses, were $1.73 billion. We used a portion
of the net proceeds to redeem our $500 million 6.45% senior unsecured 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.
In March 2012, we repaid, without penalty, junior subordinated long-term debt of $36 million.
The remainder of the cash used in or provided by financing activities in 2014, 2013, and 2012 primarily resulted
from proceeds from stock option exercises and the change in book overdraft.
Future Sources and Uses of Liquidity
Dividends
The following table provides details of dividend payments, excluding dividend equivalent rights, in 2012, 2013,
and 2014 under our Board approved quarterly cash dividend policy:
Payment
Date
Amount
per Share
Total
Amount
(in millions)
2012 $1.02 $ 165
2013 $1.06 $ 167
2014 $1.10 $ 170
In October 2014, the Board declared a cash dividend of $0.28 per share that was paid on January 30, 2015 to
stockholders of record on December 31, 2014, 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 September 2014, the Board of Directors replaced its previously approved share repurchase authorization of up
to $1 billion (of which $816 million remained unused) with the current authorization for repurchases of up to $2 billion
of our common shares exclusive of shares repurchased in connection with employee stock plans, expiring on
December 31, 2016. 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 (including pursuant
to an accelerated share repurchase agreement with investment banks), subject to certain regulatory restrictions on
volume, pricing, and timing. As of February 18, 2015, the remaining authorized amount under the current authorization
totaled approximately $1.37 billion, after giving effect to the $500 million accelerated share repurchase program we
entered into in November 2014 with Goldman, Sachs & Co.
Senior Notes
In September 2014, we issued $400 million of 2.625% senior notes due October 1, 2019, $600 million of 3.85%
senior notes due October 1, 2024 and $750 million of 4.95% senior notes due October 1, 2044. Our net proceeds,