Unum 2014 Annual Report Download - page 152

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150 UNUM • 2014 ANNUAL REPORT
Notes To Consolidated Financial Statements
The fair value of PSUs is estimated on the date of initial grant using the Monte-Carlo simulation model. The assumptions used to value
PSUs granted during the years shown are as follows:
Year Ended December 31
2014 2013
Expected Volatility (based on historical daily stock prices) 31% 35%
Expected Life (equals the performance period) 3.0 years 3.0 years
Risk Free Interest Rate (based on U.S. Treasury yields at the date of grant) 0.65% 0.38%
Restricted Stock Units (RSUs)
Activity for RSUs classified as equity is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Outstanding at December 31, 2013 1,322 $24.35
Granted 568 33.77
Vested (782) 25.24
Forfeited (27) 29.07
Outstanding at December 31, 2014 1,081 28.41
During 2014, 2013, and 2012, we issued RSUs with a weighted average grant date fair value per share of $33.77, $24.68, and $22.96,
respectively. RSUs vest over a one to three-year service period, beginning at the date of grant, and the compensation cost is recognized
ratably during the vesting period. Forfeitable dividend equivalents on RSUs are accrued in the form of additional RSUs. Compensation cost
for RSUs subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period.
The total fair value of shares vested during 2014, 2013, and 2012 was $19.8 million, $18.3 million, and $19.5 million, respectively.
At December 31, 2014, we had $10.9 million of unrecognized compensation cost related to RSUs that will be recognized over a weighted
average period of 0.8 years.
Cash-Settled Awards
Activity for cash-settled awards classified as a liability is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Outstanding at December 31, 2013 165 $24.09
Granted 46 33.85
Vested (88) 24.47
Outstanding at December 31, 2014 123 27.31