Assurant 2011 Annual Report Download - page 119

ASSURANT, INC.2011 Form10-K F-43
17 Stock Based Compensation
for the years ended December31, 2011, 2010 and 2009, respectively.
 e weighted average grant date fair value for PSUs granted in 2010
and 2009 was $33.12 and $20.39, respectively.
As of December31, 2011, there was $12,880 of unrecognized
compensation cost related to outstanding PSUs.  at cost is expected
to be recognized over a weighted-average period of 0.7 years.  e
aggregate intrinsic value and the weighted-average remaining contractual
term of PSUs outstanding at December31, 2011 was $57,541 and
1.05 years, respectively.
 e fair value of PSUs with market conditions was estimated on the
date of grant using a Monte Carlo simulation model, which utilizes
multiple variables that determine the probability of satisfying the
market condition stipulated in the award. Expected volatilities for
awards issued during the years ended December31, 2011 and 2010
were based on the historical stock prices of the Company’s stock and
peer insurance group.  e expected term for grants issued during the
year ended December31, 2011 and 2010 was assumed to equal the
average of the vesting period of the PSUs.  e risk-free rate was based
on the U.S. Treasury yield curve in e ect at the time of grant.
Forawardsgrantedduringthe yearendedDecember31,
2011 2010 2009
Expected volatility 59.39% 60.16% 54.22%
Expected term (years) 2.81 2.80 2.80
Risk free interest rate 1.18% 1.30% 1.29%
Long-Term Incentive Plan
Prior to the approval of the ALTEIP, share based awards were granted
under the 2004 Assurant Long-Term Incentive Plan (“ALTIP”),
which authorized the granting of up to 10,000,000 new shares of
the Company’s common stock to employees and o cers under the
ALTIP, Business Value Rights Program (“BVR”) and CEO Equity
Grants Program. Under the ALTIP, the Company was authorized to
grant restricted stock and SARs. Since May 2008, no new grants have
been made under this plan.
Restricted stock granted under the ALTIP vests on a prorated basis
over a three year period. SARs granted prior to 2007 under the ALTIP
cli vest as of December31 of the second calendar year following
the calendar year in which the right was granted, and have a  ve year
contractual life. SARs granted in 2007 and through May 2008 cli
vest on the third anniversary from the date the award was granted, and
have a  ve year contractual life. SARs granted under the BVR Program
have a three year cli vesting period. Restricted stock granted under
the CEO Equity Grants Program have variable vesting schedules.
Restricted Stock
A summary of the Company’s outstanding restricted stock is presented below:
Shares Weighted-Average Grant-Date Fair Value
Shares outstanding at December 31, 2010 58,661 $ 52.77
Grants — —
Vests (50,538) 52.44
Forfeitures (438) 61.33
SHARES OUTSTANDING AT DECEMBER 31, 2011 7,685 $ 54.44
 e compensation expense recorded related to restricted stock was $367,
$1,647 and $4,409 for the years ended December31, 2011, 2010 and
2009, respectively.  e related total income tax bene t recognized was
$129, $577 and $1,543 for the years ended December31, 2011, 2010
and 2009, respectively.
As of December31, 2011, there was $28 of unrecognized compensation
cost related to outstanding restricted stock.  at cost is expected to
be recognized over a weighted-average period of 0.29 years.  e total
fair value of shares vested during the years ended December31, 2011,
2010 and 2009 was $1,918, $2,962 and $2,880, respectively.
Stock Appreciation Rights
A summary of the Company’s SARs is presented below:
Rights WeightedAverage Exercise Price
SARs outstanding, December31, 2010 3,791,849 $ 48.20
Grants — —
Exercises (281,457) 24.59
Forfeitures (14,939) 60.65
Expirations (1,060,035) 52.22
SARS OUTSTANDING, DECEMBER31, 2011 2,435,418 $ 49.11
SARS EXERCISABLE AT DECEMBER31, 2011 2,435,418 $ 49.11