Unum GroupUNM

Unum Group Earnings Per Share Disclosure

10-KFiled Feb 17, 20261 min read
Earnings Per Common Share

Net income per common share is determined as follows:

 Year Ended December 31
 202520242023
 (in millions of dollars, except share data)
Numerator
Net Income$738.5 $1,779.1 $1,283.8 
Denominator (000s)
Weighted Average Common Shares - Basic172,511.5 187,497.7 196,659.7 
Dilution for Assumed Exercises of Nonvested Stock Awards410.1 571.5 942.3 
Weighted Average Common Shares - Assuming Dilution172,921.6 188,069.2 197,602.0 
Net Income Per Common Share
Basic$4.28 $9.49 $6.53 
Assuming Dilution$4.27 $9.46 $6.50 
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 nonvested restricted stock units on the computation of diluted earnings per share. Under this method, the potential common shares from 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 grant price of the nonvested restricted stock units. Potential common shares not included in the computation of diluted earnings per share because the impact would be antidilutive, approximated 0.3 million, 0.1 million, and 0.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. See Note 13 for further discussion of our stock-based compensation plans.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesFair ValueLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs PerformanceNEO Compensation Adjustments