Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 51

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 51
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 a fair value equal to the market price of our common stock on the date of grant and generally vests in equal annual tranches over a three year period from the date of grant. Certain of our restricted stock grants also include performance-based conditions generally associated with return on invested capital and strategic membership growth. Restricted stock units have forfeitable dividend equivalent rights equal to the dividend paid on common stock. The weighted-average grant date fair value of our restricted stock was $364.59 in 2024, $508.23 in 2023, and $430.06 in 2022. Activity for our restricted stock was as follows for the year ended December 31, 2024:SharesWeighted-AverageGrant-DateFair Value (shares in thousands)Nonvested restricted stock at December 31, 2023754 $488.06 Granted686 364.59 Vested(497)389.41 Forfeited(75)433.72 Nonvested restricted stock at December 31, 2024868 $426.40 Approximately 33% of the nonvested restricted stock at December 31, 2024 included performance-based conditions.The fair value of shares vested was $157 million during 2024, $236 million during 2023, and $244 million during 2022. Total compensation expense not yet recognized related to nonvested restricted stock was $221 million at December 31, 2024. 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 once vested.Stock OptionsStock options are granted with an exercise price equal to the fair market value of the underlying common stock on the date of grant. Our stock plans, as approved by the Board of Directors and stockholders, define fair market value as the average of the highest and lowest stock prices reported on the composite tape by the New York Stock Exchange on a given date. Exercise provisions vary, but most options vest in whole or in part 1 to 3 years after grant and expire 7 years after grant.The weighted-average fair value of each option granted during 2024, 2023, and 2022 is provided below. The fair value was estimated on the date of grant using the Black-Scholes pricing model with the weighted-average assumptions indicated below:202420232022Weighted-average fair value at grant date$96.42 $130.74 $113.35