Unum 2009 Annual Report Download - page 138

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136
Notes To Consolidated Financial Statements
Unum
2009
Note 10. Stockholders’ Equity and Earnings Per Common Share
Common Stock
During 2007, Unum Group’s board of directors authorized the repurchase of up to $700.0 million of Unum Group common stock. In
January 2008, we repurchased approximately 14.0 million shares for $350.0 million, using an accelerated share repurchase agreement.
Under the terms of the repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted
average price of Unum Group common stock during the term of the agreement. Any price adjustment payable to us was to be settled in
shares of Unum Group common stock. Any price adjustment we would have been required to pay was to be settled, at our option, in either
cash or common stock. A 30 percent partial acceleration of the agreement, 4.2 million shares, occurred on March 26, 2008 and settled on
March 28, 2008, with the price adjustment resulting in the delivery to us of approximately 0.5 million additional shares of Unum Group
common stock. The remaining 9.8 million shares settled on May 29, 2008, with the price adjustment resulting in the delivery to us of
approximately 0.9 million additional shares.
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 units in May 2007 by issuing 17.7 million shares of common stock. 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) 2009 2008 2007
Numerator
Net Income $852.6 $553.2 $679.3
Denominator (000s)
Weighted Average Common Shares — Basic 331,266.2 341,022.8 352,969.1
Dilution for the Purchase Contract Element of the
Adjustable Conversion-Rate Equity Security Units — — 1,673.0
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 870.0 537.5 1,134.4
Weighted Average Common Shares — Assuming Dilution 332,136.2 341,560.3 355,776.5
Net Income Per Common Share
Basic $ 2.57 $ 1.62 $ 1.92
Assuming Dilution $ 2.57 $ 1.62 $ 1.91