Stockholders' Equity and Earnings Per Common Share

9 Months Ended

Sep. 30, 2016

Stockholders' Equity and Earnings Per Common Share [Abstract]

Earnings Per Share Disclosure

Net income per common share is determined as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2016		2015		2016		2015
	(in millions of dollars, except share data)
Numerator
Net Income	$	236.0	$	203.8	$	683.4	$	641.0
Denominator (000s)
Weighted Average Common Shares - Basic	233,752.0		245,400.0		236,744.3		248,372.9
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards	461.5		924.4		399.5		855.2
Weighted Average Common Shares - Assuming Dilution	234,213.5		246,324.4		237,143.8		249,228.1
Net Income Per Common Share
Basic	$	1.01	$	0.83	$	2.89	$	2.58
Assuming Dilution	$	1.01	$	0.83	$	2.88	$	2.57

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, 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 exercise price of the stock options and the grant price of the nonvested restricted stock units and the nonvested performance share units. The outstanding stock options have exercise prices ranging from $11.37 to $26.29, the nonvested restricted stock units have grant prices ranging from $27.85 to $36.36, and the nonvested performance share units have grant prices ranging from $27.85 to $34.08.

In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings per share) are included. For the three and nine months ended September 30, 2016, there were approximately 0.5 million potential common shares that were excluded in the computation of diluted earnings per share because the impact would be antidilutive, based on then current market prices. There were approximately 0.1 million and 0.3 million potential common shares that were antidilutive for the three and nine months ended September 30, 2015, respectively.

Stockholders' Equity Disclosure

Common Stock

During the second quarter of 2016, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 26, 2017. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 21, 2016. The remaining repurchase amount under the new program was $598.6 million at September 30, 2016.

Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2016		2015		2016		2015
	(in millions)
Shares Repurchased	2.9		3.2		9.4		9.4
Cost of Shares Repurchased (1)	$	100.2	$	115.0	$	300.3	$	326.2

(1) Includes commissions of $0.1 million and $0.2 million for the three and nine month period ended September 30, 2016, respectively, and $0.1 million for the nine months ended September 30, 2015. For the three month period ended September 30, 2015 there was a de minimis amount of commissions.

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.