Stockholders' Equity and Earnings Per Common Share

6 Months Ended

Jun. 30, 2020

Stockholders' Equity and Earnings Per Common Share [Abstract]

Earnings Per Common Share

Net income per common share is determined as follows:


	Three Months Ended June 30						Six Months Ended June 30
	2020		2019		2020		2019
	(in millions of dollars, except share data)
Numerator
Net Income	$	265.5	$	281.2	$	426.5	$	562.1

Denominator (000s)
Weighted Average Common Shares - Basic	203,624.3		211,068.7		203,466.9		212,672.8
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards	46.8		43.9		48.3		88.3
Weighted Average Common Shares - Assuming Dilution	203,671.1		211,112.6		203,515.2		212,761.1

Net Income Per Common Share
Basic	$	1.30	$	1.33	$	2.10	$	2.64
Assuming Dilution	$	1.30	$	1.33	$	2.10	$	2.64

We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding for the period. In computing earnings per share assuming dilution, we include potential common shares that are dilutive (those that reduce earnings per share). We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, the potential common shares from stock options and nonvested restricted stock units will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units. The outstanding stock options have an exercise price of $24.25 and the nonvested restricted stock units have grant prices ranging from $12.45 to $55.26. Potential common shares from performance based share units will have a dilutive effect as the attainment of performance conditions is progressively achieved during the vesting period. Potential common shares not included in the computation of diluted earnings per share because the impact would be antidilutive, approximated 1.8 million and 1.5 million potential common shares for the three and six months ended June 30, 2020. There were approximately 1.2 million potential common shares that were antidilutive for both the three and six months ended June 30, 2019.

Stockholders' Equity Disclosure

Common Stock

During the second quarter of 2019, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 23, 2020. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 24, 2019. The remaining repurchase amount under the new program was $516.2 million at June 30, 2020.

Common stock repurchases are accounted for using the cost method and classified as treasury stock until otherwise retired. During the three and six months ended June 30, 2019, we repurchased 2.9 million and 5.6 million shares at a cost of $100.2 million and $200.2 million, respectively, which included commissions of $0.2 million in each period. There were no shares repurchased during the three or six months ended June 30, 2020.

Preferred Stock

Unum Group has 25.0 million shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date.