Unum 2014 Annual Report Download - page 153

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UNUM • 2014 ANNUAL REPORT 151
Cash-settled awards 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 cash-settled awards are accrued in the form of additional
units. Compensation cost for cash-settled awards subject to accelerated vesting at the date of retirement eligibility is recognized over the
implicit service period.
The amount payable per unit awarded is equal to the price per share of Unum Group’s common stock at settlement of the award, and
as such, we measure the value of the award each reporting period based on the current stock price. The effects of changes in the stock
price during the service period are recognized as compensation cost over the service period. Changes in the amount of the liability due to
stock price changes after the service period are recognized as compensation cost during the period in which the changes occur.
Year Ended December 31
(in millions of dollars, except per unit data) 2014 2013 2012
Weighted Average Grant Date Fair Value per Unit Granted $33.85 $24.22 $23.23
Total Fair Value of Units Vested $ 2.1 $ 2.4 $ 1.5
Total Fair Value of Units Paid $ 2.9 $ 2.5 $ 1.5
There is no unrecognized compensation cost related to the cash-settled awards, other than future changes in the liability due to future
stock price changes, as the units do not require additional future service.
Stock Options
Stock option activity is summarized as follows:
Remaining Intrinsic
Shares Weighted Average Contractual Value
(000s) Exercise Price Term (in years) (in millions)
Outstanding at December 31, 2013 1,395 $21.17
Exercised (396) 23.55
Outstanding at December 31, 2014 999 20.23 3.8 $14.6
Exercisable at December 31, 2014 874 $19.73 3.5 $13.2
All outstanding stock options at December 31, 2014 are expected to vest. Stock options 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. Compensation cost for stock
options subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period.
The intrinsic value of options exercised and fair value of options vested are as follows:
Year Ended December 31
(in millions of dollars) 2014 2013 2012
Total Intrinsic Value of Options Exercised $4.0 $4.4 $0.6
Total Fair Value of Options Vested $2.4 $2.4 $2.3
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