Unum 2006 Annual Report Download - page 166

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
Unum Group and Subsidiaries
148
Note 14 - Segment Information - Continued
Assets by segment are as follows:
2006 2005
Unum US $ 20,900.8 $ 20,186.1
Unum UK 3,904.2 3,335.3
Colonial 2,355.0 2,231.6
Individual Income Protection - Closed Block 15,609.5 15,792.1
Other 8,998.8 8,980.6
Corporate 942.0 1,178.2
Discontinued Operations 113.0 162.9
Total $ 52,823.3 $ 51,866.8
December 31
(in millions of dollars)
We report goodwill in our Unum US segment and in our Unum UK segment, which are the segments expected to
benefit from the originating business combinations. Stockholders’ equity is allocated to the operating segments on
the basis of an internal allocation formula that reflects the volume and risk components of each operating segment’s
business and aligns allocated equity with our target capital levels for regulatory and rating agency purposes. We
modify this formula periodically to recognize changes in the views of capital requirements.
Note 15 - Commitments and Contingent Liabilities
Commitments
We have noncancelable lease obligations on certain office space and equipment. As of December 31, 2006, the
aggregate net minimum lease payments were $106.8 million payable as follows: $32.1 million in 2007, $23.1
million in 2008, $16.1 million in 2009, $10.1 million in 2010, $6.9 million in 2011, and $18.5 million thereafter.
Rental expense for the years ended December 31, 2006, 2005, and 2004 was $35.8 million, $33.9 million, and $37.9
million, respectively.
Contingent Liabilities
We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In
others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide
variation of pleading practice permitted in the United States courts with respect to requests for monetary damages,
including some courts in which no specified amount is required and others which allow the plaintiff to state only that
the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs
to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of
others in the industry with respect to litigating or resolving claims through settlement over an extended period of
time, we believe that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the
case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated.
The lawsuits described below are for the most part in very preliminary stages. The outcome of the matters is
uncertain, and we are unable to estimate a range of reasonably possible losses. Unless indicated otherwise, reserves
have not been established for these matters. An adverse outcome in one or more of these actions could, depending
on the nature, scope, and amount of the ruling, materially adversely affect our consolidated results of operations in a
period, encourage other litigation, harm the Company’s reputation and goodwill, and limit our ability to write new
business, particularly if the adverse outcomes negatively impact certain of our debt and financial strength ratings.