Unum 2013 Annual Report Download - page 152

150 / UNUM 2013 ANNUAL REPORT
Notes To Consolidated Financial Statements
Defined Contribution Plans
We offer a 401(k) plan to all eligible U.S. employees under which a portion of employee contributions is matched. Concurrent with
the adoption of our U.S. pension plan amendments, we adopted an amendment to increase the benefits under our 401(k) plan, effective
January 1, 2014, to match dollar-for dollar up to 5.0 percent of base salary. We previously matched dollar-for-dollar up to 3.0 percent of
base salary and $0.50 on the dollar for each of the next 2.0 percent of base salary for employee contributions into the 401(k) plan. Also
effective January 1, 2014, we will include any performance-based incentive compensation as part of the definition of earnings for purposes
of contributions. We will also establish a new component of the 401(k) plan wherein we will make an additional non-elective contribution
of 4.5 percent of earnings for all eligible employees, and a separate transition contribution will be made for eligible employees who meet
certain age and years of service criteria. These changes are in compliance with ERISA guidelines, and the 401(k) plan will continue to
qualify for a “safe harbor” from annual discrimination testing.
We also offer a defined contribution plan to all eligible U.K. employees under which a portion of employee contributions is matched.
Concurrent with the adoption of our U.K. pension plan amendments, we adopted an amendment to increase the benefits under our
U.K. defined contribution plan. Effective July 1, 2014, we will increase benefits under the defined contribution plan wherein we will match
two pounds for every one pound on the first 1.0 percent of employee contributions into the plan and will 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 will increase the non-elective contribution to 6.0 percent of base salary for all eligible employees,
and a separate transition contribution will be made for all eligible employees through March 31, 2016.
During the years ended December 31, 2013, 2012, and 2011, we contributed $18.8 million, $18.9 million, and $18.8 million,
respectively, to our U.S. defined contribution plan, and $2.9 million, $2.9 million, and $2.6 million, or £1.9 million, £1.8 million, and
£1.6 million, respectively, to 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) 2013 2012 2011
Numerator
Net Income $858.1 $894.4 $284.2
Denominator (000s)
Weighted Average Common Shares — Basic 264,725.8 281,355.9 302,399.8
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 1,223.4 400.9 1,171.2
Weighted Average Common Shares — Assuming Dilution 265,949.2 281,756.8 303,571.0
Net Income Per Common Share
Basic $ 3.24 $ 3.18 $ 0.94
Assuming Dilution $ 3.23 $ 3.17 $ 0.94