Sun Life 2010 Annual Report Download - page 144

Download and view the complete annual report

Please find page 144 of the 2010 Sun Life annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

As at December 31, 2009 Level 1 Level 2 Level 3 Total
Segregated funds net assets $ 38,303 $ 41,448 $ 787 $ 80,538
Embedded derivative liabilities $ – $ – $ 1,093 $ 1,093
The following tables show a reconciliation of the beginning and ending balances for additional assets and liabilities which are
categorized as level 3 under FASB ASC Topic 820 for the year ended December 31, 2010 and 2009.
Total realized and
unrealized gains (losses)(2)
For the year ended
December 31, 2010
Beginning
balance
Included in net
income (loss)
Included
in OCI
Purchases,
issuances, and
settlements (net)
Transfers in
and/or (out)
of level 3(1)
Ending
balance
Change in unrealized
gains (losses) included
in earnings relating to
instruments still held at
the reporting date(2)
Segregated funds net assets $ 787 $ (25) $ (4) $ (56) $ (159) $ 543 $ 10
Embedded derivative liabilities $ 1,093 $ (638) $ – $ 331 $ – $ 786 $ (112)
(1) Transfers in and/or (out) of level 3, $3 and $(162), respectively, during 2010 are primarily attributable to changes in the transparency of inputs used to price the securities.
(2) For liabilities, gains are indicated in negative numbers.
Total realized and
unrealized gains (losses)(2)
For the year ended
December 31, 2009
Beginning
balance
Included in net
income (loss)
Included
in OCI
Purchases,
issuances, and
settlements (net)
Transfers in
and/or (out)
of level 3(1)
Ending
balance
Change in unrealized
gains (losses) included
in earnings relating to
instruments still held at
the reporting date(2)
Segregated funds net assets $ 1,187 $ (81) $ – $ (277) $ (42) $ 787 $ 167
Embedded derivative liabilities $ 2,469 $ (1,620) $ – $ 244 $ – $ 1,093 $ (1,346)
(1) Transfers in and/or (out) of level 3 during 2009 are primarily attributable to changes in the transparency of inputs used to price the securities.
(2) For liabilities, gains are indicated in negative numbers.
26.D.xv Accounting for uncertainty in income taxes:
The liability for unrecognized tax benefits (“UTBs”) related to permanent and temporary tax adjustments, exclusive of interest, was
$242 as at December 31, 2010 ($707 as at December 31, 2009). Of this total, $219 ($419 as at December 31, 2009) of tax benefits
would favorably affect our effective tax rate if the tax benefits were recognized in our Consolidated Financial Statements.
The net changes in the liability are as follows:
UTB balance as at January 1, 2009 $ 550
Increase (decrease) related to tax positions in prior year (81)
Increase (decrease) related to tax positions in current year 281
Increase (decrease) related to foreign exchange movement (43)
UTB balance as at December 31, 2009 $ 707
Increase (decrease) related to tax positions in prior year (470)
Increase (decrease) related to tax positions in current year 19
Increase (decrease) related to foreign exchange movement (14)
UTB balance as at December 31, 2010 $242
140 Sun Life Financial Inc. Annual Report 2010 Notes to the Consolidated Financial Statements