Unum 2006 Annual Report Download - page 159
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
Unum Group and Subsidiaries
141
Note 12 - Stock-Based Compensation - Continued
Expense for the stock plans described above, included in compensation expense in the consolidated statements of
operations, is as follows:
2006 2005 2004
Nonvested Stock Awards $ 15.3 $ 12.7 $ 4.9
Stock O
p
tions 0.5 0.6 0.6
ESPP 0.6 0.5 0.5
Total Com
p
ensation Ex
p
ense, Before Income Tax $ 16.4 $ 13.8 $ 6.0
Total Compensation Expense, Net of Income Tax 10.7$ 9.0$ 3.9$
(in millions of dollars)
Year Ended December 31
Cash received under all share-based payment arrangements for the years ended December 31, 2006, 2005, and 2004
was $5.0 million, $18.1 million, and $5.7 million, respectively.
Nonvested Stock Awards
Nonvested share activity is summarized as follows:
Weighted Average
Shares Grant Date
(000s) Fair Value
Nonvested at December 31, 2005 2,187 14.61$
Granted 781 20.95
Vested (1,055) 11.94
Forfeited (80) 18.51
Nonvested at December 31, 2006 1,833 18.68
Stock awards vest over a two to five year service period, beginning at the date of grant, and the compensation cost is
recognized ratably during the vesting period. Compensation cost for stock awards subject to accelerated vesting
upon retirement is recognized over the implicit service period for awards issued subsequent to 2005 and over the
explicit service period (subject to acceleration upon actual retirement) for awards issued prior to 2006. We pay cash
dividend equivalents on outstanding nonvested stock awards. Dividend equivalents paid on nonvested stock awards
are charged to expense when paid. At December 31, 2006, we had $12.7 million of unrecognized compensation cost
related to nonvested stock awards that will be recognized over a weighted average period of 1.0 year. Prior to
adoption of SFAS 123(R), this amount was reported as additional paid-in capital and deferred compensation, a
contra equity account. The value of this contra equity account at the adoption of SFAS 123(R) was $13.8 million.
The weighted average grant date fair values per share for nonvested stock awards granted during 2006, 2005, and
2004 were $20.95, $17.43, and $15.14, respectively.