Unum 2012 Annual Report Download - page 147
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UNUM 2012 ANNUAL REPORT 145
Note 9. Stockholders’ Equity and Earnings Per Common Share
Common Stock
In July 2012, February 2011, and May 2010, our board of directors authorized the repurchase of up to $750.0 million, $1.0 billion, and
$500.0 million, respectively, of Unum Group’s common stock. At December 31, 2012, no amounts were remaining for the purchase of
shares under either the February 2011 or May 2010 repurchase program. The July 2012 share repurchase program has an expiration date
of January 2014, and the dollar value of shares remaining under this program was $550.0 million at December 31, 2012.
Common stock repurchases were classified as follows in our consolidated statements of stockholders’ equity:
Year Ended December 31
2012 2011 2010
(in millions) Shares Cost (1) Shares Cost (1) Shares Cost (1)
Treasury Stock 23.6 $500.6 17.7 $419.9 16.4 $356.0
Retirement of Common Shares (2) — — 7.7 200.0 — —
Total 23.6 $500.6 25.4 $619.9 16.4 $356.0
(1) Includes commissions of $0.6 million, $0.3 million, and $0.3 million for the years ended December 31, 2012, 2011, and 2010, respectively.
(2) In February 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a financial counterparty. As part of this
transaction, we simultaneously entered into a forward contract indexed to the price of Unum Group common stock, which subjected the transaction to a future price
adjustment. 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, less a discount. 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 would have been settled in either cash or common stock at our option. The final price adjustment
settlement occurred in March 2011, resulting in the delivery to us of 0.6 million additional shares.
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) 2012 2011 2010
Numerator
Net Income $894.4 $284.2 $878.7
Denominator (000s)
Weighted Average Common Shares — Basic 281,355.9 302,399.8 325,839.0
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 400.9 1,171.2 1,382.1
Weighted Average Common Shares — Assuming Dilution 281,756.8 303,571.0 327,221.1
Net Income Per Common Share
Basic $ 3.18 $ 0.94 $ 2.70
Assuming Dilution $ 3.17 $ 0.94 $ 2.69