Unum 2010 Annual Report Download - page 145

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143
Unum 2010 Annual Report
Nonvested Stock Awards
Activity for nonvested stock awards classified as equity is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Nonvested at December 31, 2009 2,420 $15.62
Granted 856 20.91
Vested (1,108) 17.19
Forfeited (69) 16.02
Nonvested at December 31, 2010 2,099 16.85
Stock 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. Compensation cost for stock awards subject to accelerated vesting upon retirement is recognized over the
implicit service period. Forfeitable dividend equivalents on nonvested stock awards are accrued in the form of additional restricted stock units.
The weighted average grant date fair values per share for nonvested stock awards granted during 2010, 2009, and 2008 were
$20.91, $12.32, and $23.66, respectively. The total fair value of shares vested during 2010, 2009, and 2008 was $19.0 million, $17.5 million,
and $11.3 million, respectively. At December 31, 2010, we had $12.6 million of unrecognized compensation cost related to nonvested
stock awards that will be recognized over a weighted average period of 0.8 years.
Cash-Settled Awards
Cash-settled awards vest over a 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 awards subject to accelerated vesting upon retirement is recognized over the
implicit service period. Forfeitable dividend equivalents on nonvested cash-settled awards are accrued in the form of additional units.
During 2010, we granted 100,445 units which will be settled in cash ratably over a three year period on the anniversary of the award.
The amount payable per unit awarded will be 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 compensation cost of the period in which the changes occur. The cash-settled awards
granted during 2010 had a weighted average grant date fair value per unit of $20.79. At December 31, 2010, we had 101,695 units
outstanding, including dividend equivalent units. There is no unrecognized compensation cost related to the 2010 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.
Performance Restricted Stock Units (PRSUs)
PRSU activity is summarized as follows:
Shares (000s) Weighted Average Grant Date Fair Value
PRSUs at December 31, 2009 1,172 $16.06
Dividends 19 21.44
Forfeited (48) 16.10
PRSUs at December 31, 2010 1,143 16.15
In September 2007, we issued approximately 1.25 million PRSUs with a grant date fair value of $15.99. Vesting for this grant is
contingent upon meeting various company threshold performance and stock price conditions. Forfeitable dividend equivalents on PRSUs are
accrued in the form of additional restricted stock units. The weighted average grant date fair values per share for PRSU grants and dividends
during 2010, 2009, and 2008 were $21.44, $15.95, and $19.08, respectively. All PRSUs outstanding at December 31, 2010 were nonvested.