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39
Unum 2009 Annual Report
threshold but that now satisfy the recognition threshold are recognized in the first subsequent financial reporting period in which that
threshold is met. Previously recognized tax positions that no longer meet the more likely than not recognition threshold are derecognized
in the first subsequent financial reporting period in which that threshold is no longer met. If a previously recognized tax position is settled
for an amount that is different from the amount initially measured, the difference will be recognized as a tax benefit or expense in the
period the settlement is effective. We believe that tax positions have been reflected in our financial statements at appropriate amounts
in conformity with GAAP.
Contingent Liabilities
On a quarterly basis, we review relevant information with respect to litigation and contingencies to be reflected in our consolidated
financial statements. An estimated loss is accrued when it is probable that a liability has been incurred and the amount of the loss can be
reasonably estimated. It is possible that our results of operations or cash flows in a particular period could be materially affected by an
ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash flows for
the particular period. See Note 14 of the “Notes to Consolidated Financial Statements” for further discussion.
Consolidated Operating Results
Year Ended December 31
(in millions of dollars) 2009 % Change 2008 % Change 2007
Revenue
Premium Income $ 7,475.5 (4.0)% $7,783.3 (1.5)% $ 7,901.1
Net Investment Income 2,346.6 (1.8) 2,389.0 (0.9) 2,409.9
Net Realized Investment Gain (Loss) 11.7 (102.5) (465.9) N.M. (65.2)
Other Income 257.2 (6.8) 275.9 0.7 274.1
Total 10,091.0 1.1 9,982.3 (5.1) 10,519.9
Benefits and Expenses
Benefits and Change in Reserves for Future Benefits 6,291.6 (5.1) 6,626.4 (5.2) 6,988.2
Commissions 837.1 (1.9) 853.3 1.5 841.1
Interest and Debt Expense 125.4 (20.0) 156.7 (35.2) 241.9
Deferral of Acquisition Costs (593.6) 0.5 (590.9) 6.2 (556.3)
Amortization of Deferred Acquisition Costs 526.2 1.4 519.1 8.1 480.4
Compensation Expense 793.3 2.7 772.6 6.9 722.4
Other Expenses 818.7 (0.3) 821.1 2.0 805.0
Total 8,798.7 (3.9) 9,158.3 (3.8) 9,522.7
Income from Continuing Operations
Before Income Tax 1,292.3 56.8 824.0 (17.4) 997.2
Income Tax 439.7 62.4 270.8 (16.6) 324.8
Income from Continuing Operations 852.6 54.1 553.2 (17.7) 672.4
Income from Discontinued Operations — — — (100.0) 6.9
Net Income $ 852.6 54.1 $ 553.2 (18.6) $ 679.3
N.M. = not a meaningful percentage