Unum 2015 Annual Report Download - page 153

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151
Unum 2015 Annual Report
Stock Options
Stock option activity is summarized as follows:
Remaining Intrinsic
Shares Weighted Average Contractual Value
(000s) Exercise Price Term (in years) (in millions)
Outstanding at December 31, 2014 999 $20.23
Exercised (240) 11.37
Outstanding at December 31, 2015 759 23.02 3.2 $7.8
Exercisable at December 31, 2015 744 $23.00 3.1 $7.7
All outstanding stock options at December 31, 2015 are expected to vest. Stock options 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
options subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period.
The intrinsic value of options exercised and fair value of options vested are as follows:
Year Ended December 31
(in millions of dollars) 2015 2014 2013
Total Intrinsic Value of Options Exercised $5.6 $4.0 $4.4
Total Fair Value of Options Vested $1.1 $2.4 $2.4
At December 31, 2015, we had a de minimis amount of unrecognized compensation cost related to stock options that will be
recognized over a weighted average period of 0.1 years.
The fair value of stock options is estimated on the date of initial grant using the Black-Scholes valuation model. The grant date fair value
and the assumptions used to value stock options granted during 2013 are as follows. There were no stock options granted in 2015 or 2014.
Year Ended December 31
2013
Weighted Average Grant Date Fair Value per Option $9.77
Expected Volatility (based on historical daily stock prices) 52%
Expected Life (based on historical average years to exercise) 6.0 years
Expected Dividend Yield (based on the dividend rate at the date of grant) 2.14%
Risk Free Interest Rate (based on U.S. Treasury yields at the date of grant) 1.12%