Unum 2009 Annual Report Download - page 122

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120
Notes To Consolidated Financial Statements
Unum
2009
A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated
balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
December 31
(in millions of dollars) 2009 2008 2007
Policy and Contract Benefits $ 1,736.9 $ 1,769.5 $ 1,979.7
Reserves for Future Policy and Contract Benefits 37,740.8 34,581.5 35,828.0
Total 39,477.7 36,351.0 37,807.7
Less:
Life Reserves for Future Policy and Contract Benefits 7,247.5 7,128.4 6,937.2
Accident and Health Active Life Reserves 5,999.8 5,606.7 5,221.2
Unrealized Adjustment to Reserves for Future Policy and Contract Benefits 1,644.7 (803.1) 859.3
Liability for Unpaid Claims and Claim Adjustment Expenses $24,585.7 $24,419.0 $24,790.0
The unrealized adjustment to reserves for future policy and contract benefits reflects the changes that would be necessary to
policyholder liabilities if the unrealized investment gains and losses related to the available-for-sale securities had been realized. Changes
in these adjustments are reported as a component of other comprehensive income or loss.
Note 7. Income Tax
Total income tax expense (benefit) is allocated as follows:
Year Ended December 31
(in millions of dollars) 2009 2008 2007
Income from Continuing Operations $ 439.7 $ 270.8 $ 324.8
Income from Discontinued Operations — — 10.9
Stockholders’ Equity — Additional Paid-in Capital Stock-Based Compensation 1.5 (0.6) (5.8)
Stockholders’ Equity — Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gains and Losses on Securities
Not Other-Than-Temporarily Impaired 1,454.9 (1,214.7) (134.4)
Change in Net Unrealized Gains and Losses on Securities
Other-Than-Temporarily Impaired 1.6 — —
Change in Net Gain on Cash Flow Hedges (45.3) 139.0 (6.0)
Change in Adjustment to Reserves for Future Policy
and Contract Benefits, Net of Reinsurance and Other (816.6) 578.1 34.0
Change in Unrecognized Pension and Postretirement Benefit Costs 42.0 (112.4) 16.7
Stockholders’ Equity — Retained Earnings
Adoption of ASC 320 Update — Note 1 7.7 — —
Adoption of ASC 944 Update — Note 1 — — (232.9)
Adoption of ASC 740 Update — Note 1 — — (22.7)
Total $1,085.5 $ (339.8) $ (15.4)