Sun Life 2010 Annual Report Download - page 142

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26.D.xi Earnings per share:
Details of the calculation of the net income (loss) and the weighted average number of shares used in the earnings per share
computations for the years ended December 31 are as follows:
2010 2009 2008
Cdn. GAAP U.S. GAAP Cdn. GAAP U.S. GAAP Cdn. GAAP U.S. GAAP
Common shareholders’ net income (loss) $ 1,583 $ 1,391 $ 534 $ 2,324 $ 785 $ (749)
Less: Effect of stock awards of subsidiaries 12 12 6 6 14 14
Common shareholders’ net income (loss) on a
diluted basis $ 1,571 $ 1,379 $ 528 $ 2,318 $ 771 $ (763)
Weighted average number of shares outstanding
(in millions) 568 568 561 561 561 561
Add: Adjustments relating to the dilutive impact of
stock options 22111–
(1)
Weighted average number of shares outstanding on
a diluted basis (in millions) 570 570 562 562 562 561
(1) For the year ended December 31, 2008, an adjustment of 1 million common shares related to the potential dilutive impact of stock options was excluded from the calculation of
diluted earnings per share since their effect is anti-dilutive when a loss is reported.
26.D.xii Statements of cash flows:
Under Cdn. GAAP, deposits, maturities and withdrawals related to investment-type contracts and universal life contracts are included in
Operating activities. Under U.S. GAAP, deposits, maturities and withdrawals are reflected as financing activities; these cash flow items
are as follows:
For the years ended December 31 2010 2009 2008
Deposits and withdrawals reclassified to financing activities:
Deposits to policyholders’ accounts $ 4,121 $ 5,519 $ 5,020
Withdrawals from policyholders’ accounts $ 6,227 $ 5,693 $ 7,076
26.D.xiii Liabilities for contract guarantees:
We offer various guarantees to certain policyholders including a return of no less than (a) total deposits made on the contract less any
customer withdrawals, (b) total deposits made on the contract less any customer withdrawals plus a minimum return, or (c) the highest
contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. These guarantees
include benefits that are payable in the event of death, upon annuitization, or at specified dates during the accumulation period of an
annuity.
For policies with a guaranteed minimum death benefit, the net amount at risk represents the excess of the value of the guaranteed
minimum death benefit over the account value. This is a hypothetical amount that would only have been payable on December 31,
2010, had all of the policyholders died on that date. For policies with a guaranteed minimum income benefit, the net amount at risk
represents the excess of the cost of an annuity to meet the minimum income guarantee over the account value. Since there are
limitations as to when these guarantees may be exercised, not all of these guarantees would be expected to be exercised immediately.
138 Sun Life Financial Inc. Annual Report 2010 Notes to the Consolidated Financial Statements