Unum 2011 Annual Report Download - page 152

Notes To Consolidated Financial Statements
Unum 2011 Annual Report
150
In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings
per share) are included. Potential common shares not included in the computation of dilutive earnings per share because their impact
would be antidilutive, based on current market prices, approximated 2.1 million, 3.5 million, and 7.1 million shares of common stock
for the years ended December 31, 2011, 2010, and 2009, respectively.
Note 10. Stock-Based Compensation
Description of Stock Plans
Under the stock incentive plan of 2007 (the 2007 Plan), up to 35.00 million shares of common stock are available for awards to
our employees, officers, consultants, and directors. Awards may be in the form of stock options, stock appreciation rights, restricted stock,
restricted stock units, performance units, and other stock-based awards. Each full value award, defined as any award other than a stock
option or stock appreciation right, is counted as 2.7 shares. The exercise price for stock options issued cannot be less than the fair value of
the underlying common stock as of the grant date. Stock options generally have a term of eight years after the date of grant and vest after
three years. At December 31, 2011, approximately 18.25 million shares were available for future grants under the 2007 Plan.
Under the broad-based stock plan of 2001 (the 2001 Plan), up to 2.00 million shares of common stock were available for stock option
awards to our employees, officers, consultants, and brokers, excluding certain senior officers and directors. The 2001 Plan was terminated
in December 2007 for purposes of any further grants, and no shares were available at December 31, 2011. Stock options under the 2001
Plan had a maximum term of ten years after the date of grant and generally vested after three years.
Under the stock plan of 1999 (the 1999 Plan), an aggregate of up to 17.50 million shares of common stock were available for awards
to our employees, officers, brokers, and directors. Awards could be in the form of stock options, stock appreciation rights, stock awards,
dividend equivalent awards, or any other right or interest relating to stock. The 1999 Plan was terminated in May 2007 for purposes of any
further grants, other than reload grants, for which 250,000 shares were available at December 31, 2011. Stock options under the 1999 Plan
have a maximum term of ten years after the date of grant and generally vest after three years.
We issue new shares of common stock for all of our stock plan vestings and exercises.
Nonvested Stock Awards
Activity for nonvested stock awards classified as equity is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Outstanding at December 31, 2010 2,099 $16.85
Granted 715 26.13
Vested (1,106) 17.35
Forfeited (47) 19.21
Outstanding at December 31, 2011 1,661 20.36
Nonvested 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. Forfeitable dividend equivalents on nonvested stock awards are accrued in the form
of additional restricted stock units. Compensation cost for nonvested stock awards subject to accelerated vesting upon retirement is
recognized over the implicit service period.
The weighted average grant date fair value per share for nonvested stock awards granted during 2011, 2010, and 2009 was $26.13,
$20.91, and $12.32, respectively. The total fair value of shares vested during 2011, 2010, and 2009 was $19.2 million, $19.0 million, and
$17.5 million, respectively. At December 31, 2011, we had $11.5 million of unrecognized compensation cost related to nonvested stock
awards that will be recognized over a weighted average period of 0.7 years.