Sun Life 2012 Annual Report Download - page 162

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28. Earnings (Loss) 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 are as follows:
For the years ended December 31, 2012 2011(3)
Basic EPS:
Common shareholders’ net income (loss) from continuing operations $ 1,374 $ 225
Common shareholders’ net income (loss) from discontinued operation $ 180 $ (595)
Weighted average number of common shares outstanding (in millions) 593 579
Basic EPS:
Continuing operations $ 2.32 $ 0.39
Discontinued operation $ 0.30 $ (1.03)
Total $ 2.62 $ (0.64)
Diluted EPS:
Common shareholders’ net income (loss) from continuing operations $ 1,374 $ 225
Add: increase in income due to convertible instruments(1) $10$–
Common shareholders’ net income (loss) from continuing operations on a diluted basis $ 1,384 $ 225
Common shareholders’ net income (loss) from discontinued operation $ 180 $ (595)
Weighted average number of common shares outstanding (in millions) 593 579
Add: dilutive impact of stock options(2) (in millions) –1
Add: dilutive impact of convertible securities(1) (in millions) 11 –
Weighted average number of common shares outstanding on a diluted basis (in millions) 604 580
Diluted EPS:
Continuing operations $ 2.29 $ 0.39
Discontinued operation $ 0.30 $ (1.03)
Total $ 2.59 $ (0.64)
(1) The convertible instruments are certain Innovative capital instruments (SLEECS A and SLEECS B). SLEECS A were redeemed on December 31, 2011 and are therefore
excluded from the calculations of diluted earnings per share for the year ended December 31, 2012. For the year ended December 31, 2011, the impact of the conversion of
innovative capital instruments was excluded from the calculations of diluted earnings per share since the effect of conversion is anti-dilutive.
(2) The number of stock options that have not been included in the weighted average number of common shares used in the calculation of diluted EPS because these stock
options were anti-dilutive amounted to 11 million for the year ended December 31, 2012 (10 million for the year ended December 31, 2011).
(3) 2011 computations have been restated. Refer to Note 2.
29. Subsequent Event
On January 17, 2013, we announced that SLF Inc. and Khazanah Nasional Berhad (“Khazanah”) are establishing a strategic
partnership to acquire 98% of CIMB Aviva Assurance Berhad, a Malaysian insurance company and CIMB Aviva Takaful Berhad, a
Malaysian takaful company (together, “CIMB Aviva”). SLF Inc.’s subsidiary, Sun Life Assurance, and Khazanah will each pay $293 as
part of the transaction, which includes entering into a new 20-year exclusive banacassurance agreement with CIMB Bank. Sun Life
Assurance will acquire 49% of CIMB Aviva from Aviva International Holdings Limited and Khazanah will acquire 49% of CIMB Aviva
from CIMB Group Holdings Berhad (“CIMB Group”). CIMB Group will retain a two percent share of CIMB Aviva. The transaction
includes an exclusive right to distribute insurance products, including takaful products, through CIMB Bank’s network across Malaysia.
The transaction is subject to regulatory approvals in Canada and Malaysia and is expected to close in the first half of 2013.
160 Sun Life Financial Inc. Annual Report 2012 Notes to Consolidated Financial Statements