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Notes to Consolidated Financial Statements
98 Unum 2007 Annual Report
Accounting Pronouncements Outstanding: Statement of Financial Accounting Standards No. 157 (SFAS 157), Fair Value Measurements,
was issued in September 2006. SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about
fair value measurements. We will adopt the provisions of SFAS 157 effective January 1, 2008. The adoption of SFAS 157 will not have a
material effect on our financial position or results of operations.
Note 2. Discontinued Operations
As discussed in Note 1, the sale of GENEX closed effective March 1, 2007, and we recognized an after-tax gain of $6.2 million on the
sale, which is included in income from discontinued operations in our statements of income. We intend to continue to purchase certain
disability management services for a period of up to five years from the effective date of the sale. The cost of the services to be purchased
was negotiated in an arms-length transaction. Intercompany amounts paid to GENEX for these types of services was $2.3 million for the
two months ended February 28, 2007, and $15.4 million and $15.7 million for the years ended December 31, 2006 and 2005, respectively.
The cost of these services is not significant to our results of operations.
GENEX was accounted for as an asset held for sale at December 31, 2006. The results of GENEX which were previously reported
in the Other segment, are reported as discontinued operations and excluded from segment results for all periods.
Selected results for GENEX are as follows:
Year Ended December 31
(in millions of dollars, except share data) 2007 2006 2005
Total Revenue $ 47.2 $ 183.5 $ 177.9
Income Per Common Share
Basic $ 0.02 $ 0.02 $ 0.03
Assuming Dilution $ 0.02 $ 0.02 $ 0.03
Assets and liabilities for discontinued operations as reported in the accompanying consolidated balance sheets are comprised of the
following at December 31, 2006 (in millions of dollars):
Other Assets
Cash and Bank Deposits $ 3.1
Accounts and Premiums Receivable 29.6
Goodwill 71.1
Property and Equipment 4.7
Other Assets 3.8
Other Assets — Discontinued Operations $ 112.3
Other Liabilities
Income Tax Payable $ (0.6)
Deferred Income Tax 8.4
Other Liabilities 21.2
Other Liabilities — Discontinued Operations $ 29.0