Unum 2013 Annual Report Download - page 155

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UNUM 2013 ANNUAL REPORT / 153
Restricted Stock Units (RSUs)
Activity for RSUs classified as equity is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Outstanding at December 31, 2012 1,403 $23.57
Granted 731 24.68
Vested (790) 23.12
Forfeited (22) 24.22
Outstanding at December 31, 2013 1,322 24.35
During 2013, 2012, and 2011, we issued RSUs with a weighted average grant date fair value per share of $24.68, $22.96, and $26.13,
respectively. RSUs 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 RSUs are accrued in the form of additional RSUs. Compensation cost
for RSUs subject to accelerated vesting upon retirement is recognized over the implicit service period.
The total fair value of shares vested during 2013, 2012, and 2011 was $18.3 million, $19.5 million, and $19.2 million, respectively.
At December 31, 2013, we had $10.6 million of unrecognized compensation cost related to RSUs that will be recognized over a weighted
average period of 0.8 years.
Cash-Settled Awards
Activity for cash-settled awards classified as a liability is as follows:
Shares (000s) Weighted Average Grant Date Fair Value
Outstanding at December 31, 2012 207 $23.72
Granted 60 24.22
Vested (102) 23.29
Outstanding at December 31, 2013 165 24.09
Cash-settled 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 cash-settled awards are accrued in the form of additional units.
Compensation cost for cash-settled awards subject to accelerated vesting upon retirement is recognized over the implicit service period.
The amount payable per unit awarded is 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 recognized as compensation cost during the period in which the changes occur.
The weighted average grant date fair value per unit for cash-settled awards granted during 2013, 2012, and 2011 was $24.22, $23.23,
and $26.22, respectively. The total fair value of cash-settled awards vested during 2013, 2012, and 2011 was $2.4 million, $1.5 million, and
$0.7 million, respectively, and the total fair value of cash-settled awards paid during 2013, 2012, and 2011 was $2.5 million, $1.5 million,
and $0.9 million, respectively. There is no unrecognized compensation cost related to the 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.