Stockholders' Equity and Earnings Per Common Share

3 Months Ended

Mar. 31, 2021

Stockholders' Equity and Earnings Per Common Share [Abstract]

Earnings Per Share Disclosure

Earnings Per Common Share

Net income per common share is determined as follows:

	Three Months Ended March 31
	2021		2020
	(in millions of dollars, except share data)
Numerator
Net Income	$	153.0	$	161.0
Denominator (000s)
Weighted Average Common Shares - Basic	204,133.3		203,306.0
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards	604.0		49.7
Weighted Average Common Shares - Assuming Dilution	204,737.3		203,355.7
Net Income Per Common Share
Basic	$	0.75	$	0.79
Assuming Dilution	$	0.75	$	0.79

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 stock success units, 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, nonvested stock success units, 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 stock success units and nonvested restricted stock units. The outstanding stock options have an exercise price of $24.25 and the nonvested stock success units and nonvested restricted stock units have grant prices ranging from $12.45 to $49.31. 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 1.6 million and 1.1 million potential common shares for the three months ended March 31, 2021 and 2020, respectively.

Stockholders' Equity Disclosure

Common Stock

As part of our capital deployment strategy, we may repurchase shares of Unum Group's common stock, as authorized by our board of directors. During the first quarter of 2021, we did not have an open share repurchase program and did not repurchase any shares.

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.