Sun Life 2010 Annual Report Download - page 141

26.D.ix Acquisition:
We completed the acquisition of Lincoln U.K. on October 1, 2009 as described in Note 3. The following table shows the amounts of the
assets, liabilities and goodwill at the dates of acquisition under Cdn. and U.S. GAAP. The amounts under each GAAP are different due
to the different accounting policies used under each GAAP.
Lincoln U.K.
Cdn. GAAP U.S GAAP
Invested assets acquired $ 1,249 $ 1,249
Other assets acquired(1) 88 276
Segregated funds assets acquired – 6,629
1,337 8,154
Actuarial liabilities and other policy liabilities acquired 1,058 1,100
Other liabilities acquired 72 58
Segregated funds liabilities acquired – 6,629
1,130 7,787
Net balance sheet assets acquired $ 207 $ 367
Consideration:
Cash cost of acquisition $ 380(2) $ 361
Transaction and other related costs 7–
$ 387 $ 361
Goodwill on acquisition $ 180 $ (6)(3)
(1) Other assets acquired included value of business acquired of $190 under U.S. GAAP.
(2) Includes the cost to hedge the foreign currency exposure of the purchase price.
(3) Negative goodwill has been recognized in Net investment income (loss).
The following supplemental unaudited consolidated pro forma information has been prepared to give effect to the acquisition of
Lincoln U.K., as if the transaction had been completed at the beginning of each year presented. The consolidated pro forma information
is calculated by combining the results of our operations with those of Lincoln U.K. prior to the acquisition date. The consolidated pro
forma information is not intended to reflect what would have actually resulted had the transaction been completed at the beginning of
those years or what may be obtained in the future. Where applicable, the impact of synergy savings and integration costs arising from
the acquisition have been reflected.
For the years ended December 31 2009 2008
Revenue $ 20,138 $ 14,090
Total common shareholders’ net income (loss) before realized gains $ 2,541 $ 206
Net realized gains/(losses) (154) (954)
Common shareholders’ net income (loss) $ 2,387 $ (748)
Weighted average number of shares outstanding (in millions) 561 561
Basic earnings (loss) per share $ 4.25 $ (1.33)
Common shareholders’ net income (loss) on a diluted basis $ 2,381 $ (762)
Weighted average number of shares outstanding on a diluted basis (in millions) 562 561
Diluted earnings (loss) per share $ 4.24 $ (1.36)
The revenue of $60 and earnings of $13 from Lincoln U.K. since the closing date are included in the 2009 Consolidated Financial
Statements.
26.D.x Disposition
We sold our life retrocession business on December 31, 2010, as described in Note 3. As a result of the different accounting policies
under Canadian GAAP and U.S. GAAP, the loss on disposal (net of tax recovery of $17) was $155 under U.S. GAAP. Determination of
the U.S. GAAP loss on disposal includes the reversal of value of business acquired, deferred acquisition costs, and goodwill.
Notes to the Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2010 137