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Notes to Consolidated Financial Statements
126 Unum 2007 Annual Report
The weighted average grant date fair value of options granted during 2007 was $8.61. No stock options were granted during 2006
and 2005. We estimated the fair value on the date of grant using the Black-Scholes valuation model. The following assumptions were
used to value the 2007 grants:
 •Expectedvolatilityof44percent,basedonourhistoricaldailystockprices.
 •Expectedlifeof5.0years,basedonthesimpliedmethodallowedundersupplementalapplicationguidanceissuedbytheSEC
in Staff Accounting Bulletin No. 107, Share-Based Payment.
 •Expecteddividendyieldof1.57percent,basedonthedividendrateatthedateofgrant.
 •Risk-freeinterestrateof4.67percent,basedontheyieldoftreasurybondsatthedateofgrant.
ESPP
ESPP activity is summarized as follows:
Year Ended December 31
2007 2006 2005
Number of Shares Sold 114,420 148,833 154,395
Weighted Average Exercise Price $ 24.32 $ 18.99 $ 15.38
Weighted Average Grant Date Fair Value $ 5.18 $ 3.90 $ 3.29
Expense
Compensation expense for the stock plans, as reported in the consolidated statements of income, is as follows:
Year Ended December 31
(in millions of dollars) 2007 2006 2005
Nonvested Stock Awards $ 10.7 $ 15.3 $ 12.7
Performance Restricted Stock Units 2.0 — —
Stock Options 0.5 0.5 0.6
Employee Stock Purchase Plan 0.5 0.6 0.5
Total Compensation Expense, Before Income Tax $ 13.7 $ 16.4 $ 13.8
Total Compensation Expense, Net of Income Tax $ 8.9 $ 10.7 $ 9.0
Cash received under all share-based payment arrangements for the years ended December 31, 2007, 2006, and 2005 was $7.8 million,
$5.0 million, and $18.1 million, respectively.