Stockholders' Equity and Earnings Per Common Share

9 Months Ended

Sep. 30, 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 September 30				Nine Months Ended September 30
	2021		2020		2021		2020
	(in millions of dollars, except share data)
Numerator
Net Income	$	328.6	$	231.1	$	664.5	$	657.6
Denominator (000s)
Weighted Average Common Shares - Basic	204,645.8		203,761.3		204,429.6		203,564.7
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards	496.5		117.8		623.3		71.4
Weighted Average Common Shares - Assuming Dilution	205,142.3		203,879.1		205,052.9		203,636.1
Net Income Per Common Share
Basic	$	1.61	$	1.13	$	3.25	$	3.23
Assuming Dilution	$	1.60	$	1.13	$	3.24	$	3.23

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 nonvested stock success units and nonvested restricted stock units have grant prices ranging from $12.45 to $37.67. There were no outstanding stock options as of September 30, 2021. 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 1.3 million and 1.1 million potential common shares for the three and nine months ended September 30, 2021. There were approximately 2.0 million and 1.6 million potential common shares that were antidilutive for the three and nine months ended September 30, 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 nine months of 2021, we did not have an open share repurchase program and did not repurchase any shares. On October 25, 2021, our board of directors authorized the repurchase of up to $250.0 million of Unum Group's outstanding common stock through December 31, 2022, with the timing and amount of repurchase activity to be based on market conditions and other considerations, including the level of available cash, alternative uses for cash, and our stock price.

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.