Unum 2014 Annual Report Download - page 149

Download and view the complete annual report

Please find page 149 of the 2014 Unum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

UNUM • 2014 ANNUAL REPORT 147
We also offer a defined contribution plan to all eligible U.K. employees under which a portion of employee contributions is matched.
Effective July 1, 2014, we increased benefits under the defined contribution plan wherein we match two pounds for every one pound
on the first 1.0 percent of employee contributions into the plan and match additional employee contributions pound-for-pound up to
5.0 percent of base salary. We previously matched pound-for-pound up to 5.0 percent of base salary for employee contributions into the
defined contribution plan and made an additional non-elective contribution of 5.0 percent of base salary. Also effective July 1, 2014,
we increased the non-elective contribution to 6.0 percent of base salary for all eligible employees, and a separate transition contribution
is made for all eligible employees through March 31, 2016.
During the years ended December 31, 2014, 2013, and 2012, we recognized costs of $76.0 million, $18.8 million, and $18.9 million,
respectively, for our U.S. defined contribution plan and $5.0 million, $2.9 million, and $2.9 million, respectively, for our U.K. defined
contribution plan.
Note 10. Stockholders’ Equity and Earnings Per Common Share
Earnings Per Common Share
Net income per common share is determined as follows:
Year Ended December 31
(in millions of dollars, except share data) 2014 2013 2012
Numerator
Net Income $413.4 $858.1 $894.4
Denominator (000s)
Weighted Average Common Shares — Basic 255,525.9 264,725.8 281,355.9
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 1,126.9 1,223.4 400.9
Weighted Average Common Shares — Assuming Dilution 256,652.8 265,949.2 281,756.8
Net Income Per Common Share
Basic $ 1.62 $ 3.24 $ 3.18
Assuming Dilution $ 1.61 $ 3.23 $ 3.17
We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and
nonvested performance share units on the computation of diluted earnings per share. Under this method, these potential common shares
will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period
exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units and the nonvested performance
share units. The outstanding stock options have exercise prices ranging from $11.37 to $26.29; the nonvested restricted stock units have
grant prices ranging from $19.38 to $35.47; and the nonvested performance share units have grant prices ranging from $23.97 to $33.86.
See Note 11.
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 diluted earnings per share because the impact
would be antidilutive, based on then current market prices, approximated 0.1 million, 0.1 million, and 2.5 million for the years ended
December 31, 2014, 2013, and 2012, respectively.