Unum 2009 Annual Report Download - page 45

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43
Unum 2009 Annual Report
Segment Results
Our reporting segments are comprised of the following: Unum US, Unum UK, Colonial Life, Individual Disability — Closed Block, and
Corporate and Other. In the following segment financial data and discussions of segment results, “operating revenue” excludes net realized
investment gains and losses. “Operating income” or “operating loss” excludes net realized investment gains and losses and income tax.
These are considered non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company’s performance,
financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP.
These non-GAAP financial measures of “operating revenue” and “operating income” or “operating loss” differ from revenue and income
(loss) from continuing operations before income tax as presented in our consolidated operating results and in income statements prepared
in accordance with GAAP due to the exclusion of before-tax realized investment gains and losses. We measure segment performance
excluding realized investment gains and losses because we believe that this performance measure is a better indicator of the ongoing
businesses and the underlying trends in the businesses. Our investment focus is on investment income to support our insurance liabilities
as opposed to the generation of realized investment gains and losses, and a long-term focus is necessary to maintain profitability over the
life of the business. Realized investment gains and losses depend on market conditions and do not necessarily relate to decisions regarding
the underlying business of our segments. However, income or loss excluding realized investment gains and losses does not replace net
income or net loss as a measure of overall profitability. We may experience realized investment losses, which will affect future earnings
levels since our underlying business is long-term in nature and we need to earn the assumed interest rates in our liabilities.
A reconciliation of total operating revenue by segment to total consolidated revenue and total operating income by segment to
consolidated net income is as follows:
Year Ended December 31
(in millions of dollars) 2009 2008 2007
Operating Revenue by Segment $10,079.3 $10,448.2 $10,585.1
Net Realized Investment Gain (Loss) 11.7 (465.9) (65.2)
Revenue $10,091.0 $ 9,982.3 $10,519.9
Operating Income by Segment $ 1,280.6 $ 1,289.9 $ 1,062.4
Net Realized Investment Gain (Loss) 11.7 (465.9) (65.2)
Income Tax 439.7 270.8 324.8
Income from Discontinued Operations — — 6.9
Net Income $ 852.6 $ 553.2 $ 679.3