Unum 2008 Annual Report Download - page 137
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133
During August 2008, we repurchased approximately 12.5 million shares for $350.0 million, using an accelerated share repurchase
agreement with terms similar to the earlier agreement. A 50 percent partial acceleration of the agreement, 6.25 million shares, occurred
on October 7, 2008 and settled on October 10, 2008, with the price adjustment resulting in the delivery to us of approximately 1.0 million
additional shares of Unum Group common stock. The remaining 6.25 million shares settled on October 14, 2008, with the price adjustment
resulting in the delivery to us of approximately 1.0 million additional shares.
In total, we repurchased 29.9 million shares of Unum Group common stock under the share repurchase program. These shares are
reflected as treasury stock in our consolidated balance sheets.
We settled the purchase contract element of the 2004 and 2003 units in May 2007 and 2006 by issuing 17.7 million and 43.3 million
shares of common stock, respectively. See Note 8 for further discussion.
Preferred Stock
Unum Group has 25,000,000 shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been
issued to date.
Earnings Per Common Share
Net income per common share is determined as follows:
Year Ended December 31
(in millions of dollars, except share data) 2007 2006
Numerator
$ 679.3 $ 411.0
Denominator (000s)
Weighted Average Common Shares — Basic 352,969.1 324,654.9
Dilution for the Purchase Contract Element
of the Adjustable Conversion-Rate Equity Security Units 1,673.0 8,153.0
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 1,134.4 1,553.8
355,776.5 334,361.7
Net Income Per Common Share
Basic $ 1.92 $ 1.27
Assuming Dilution $ 1.91 $ 1.23
We use the treasury stock method to account for the effect of the purchase contract element of the units, outstanding stock options,
nonvested stock awards, and performance restricted stock units on the computation of dilutive 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 threshold appreciation price of the purchase contract element of the units, as described in
Note 8, or the exercise price of the stock options, the grant price of the nonvested stock awards, and/or the threshold stock price of
performance restricted stock units, as described in Note 11.
The purchase contract element of the units issued in 2004 and 2003 had a threshold appreciation price of $16.95 per share and
$13.27 per share, respectively. The outstanding stock options have exercise prices ranging from $12.23 to $58.56, the nonvested stock
awards have grant prices ranging from $11.58 to $26.25, and the performance restricted stock units have a threshold stock price of $26.00.