Unum 2009 Annual Report Download - page 81

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Unum 2009 Annual Report
Shelf Registration
We have a shelf registration, which became effective in December 2008, with the Securities and Exchange Commission to issue
various types of securities, including common stock, preferred stock, debt securities, depository shares, stock purchase contracts, units and
warrants, or preferred securities of wholly-owned finance trusts. As stated previously, we issued $350.0 million of senior notes against our
open shelf registration on September 30, 2009. The shelf registration enables us to raise funds from the offering of any individual security
covered by the shelf registration as well as any combination thereof, subject to market conditions and our capital needs.
See Note 8 of the “Notes to Consolidated Financial Statements” for additional information.
Commitments
The following table summarizes contractual obligations and our reinsurance recoverable by period as of December 31, 2009
(in millions of dollars).
In 1 Year After 1 Year After 3 Years
Total or Less up to 3 Years up to 5 Years After 5 Years
Payments Due
Long-term Debt $ 4,373.2 $ 137.5 $ 468.7 $ 240.6 $ 3,526.4
Policyholder Liabilities 39,947.3 4,386.9 6,520.0 4,939.6 24,100.8
Pensions and Other Postretirement Benefits 2,058.1 91.3 151.4 126.8 1,688.6
Payable for Collateral Under Derivative
Financial Instruments 24.9 24.9 — — —
Miscellaneous Liabilities 642.4 586.9 13.5 10.6 31.4
Operating Leases 102.2 25.7 36.5 20.4 19.6
Purchase Obligations 92.8 91.7 1.1 — —
Total $47,240.9 $5,344.9 $7,191.2 $5,338.0 $29,366.8
Receipts Due
Reinsurance Recoverable $ 7,602.7 $ 282.7 $ 550.6 $ 465.1 $ 6,304.3
Excluded from the preceding table are tax liabilities of approximately $166.7 million for which we are unable to make reasonably reliable
estimates of the period of potential cash settlements, if any, with taxing authorities. It is possible that during 2010 we will reach a final
settlement with the Internal Revenue Service concerning audit adjustments for certain tax years, but we are unable to estimate a reasonably
reliable amount for the potential cash settlement. See Note 7 of the “Notes to Consolidated Financial Statements” for additional information.
Long-term debt includes contractual principal and interest payments and therefore exceeds the amount shown in the consolidated
balance sheets. See Note 8 of the “Notes to Consolidated Financial Statements” for additional information.
Policyholder liability maturities and the related reinsurance recoverable represent the projected payout of the current in-force policyholder
liabilities and the expected cash inflows from reinsurers for liabilities ceded and therefore incorporate uncertainties as to the timing and
amount of claim payments. We utilize extensive liability modeling to project future cash flows from the in-force business. The primary
assumptions used to project future cash flows are claim incidence rates for mortality and morbidity, claim resolution rates, persistency rates,
and interest rates. These cash flows are discounted to determine the current value of the projected claim payments. The timing and amount
of payments on policyholder liabilities may vary significantly from the projections above. See our previous discussion of asset/liability
management under “Investments” contained herein.
Pensions and other postretirement benefit obligations include our defined benefit pension and postretirement plans for our employees,
including non-qualified pension plans. Pension plan obligations, other than the non-qualified plans, represent our contributions to the
pension plans. Amounts in the one year or less category equal our planned contributions within the next 12 months. The remaining years’
contributions are projected based on the expected future contributions as required under ERISA. Non-qualified pension plan and other