Unum 2007 Annual Report Download - page 116

Notes to Consolidated Financial Statements
114 Unum 2007 Annual Report
As of December 31, 2007, we had no net operating loss carryforward in the U.S. As of December 31, 2007, we had net operating loss
carryforwards in foreign jurisdictions of $5.6 million for which a full valuation allowance has been established because, in our judgment,
we will most likely not realize a tax benefit for these losses. The $0.8 million change from 2006 in the valuation allowance is due primarily
to the utilization of loss carryforwards during 2007 as well as the change in the enacted tax rate in the U.K.
Total income taxes paid during 2007, 2006, and 2005 were $189.9 million, $129.2 million, and $93.4 million, respectively.
Note 9. Debt
Short-term debt at December 31, 2007 consists of the 5.997% notes due in May 2008. There was no short-term debt outstanding
at December 31, 2006.
Long-term debt consists of the following:
Year Ended December 31
(in millions of dollars) 2007 2006
Senior Secured Notes, variable due 2037, callable at or above par $ 800.0 $ —
Senior Secured Notes, variable due 2036, callable at or above par 112.5 130.0
Adjustable Conversion-Rate Equity Security Units @ 8.25% due 2009 — 300.0
Notes @ 7.25% due 2032, callable at or above par — 150.0
Notes @ 7.375% due 2032, callable at or above par 39.5 250.0
Notes @ 6.75% due 2028, callable at or above par 166.4 250.0
Notes @ 7.25% due 2028, callable at or above par 200.0 200.0
Notes @ 7.0% due 2018, non-callable 200.0 200.0
Notes @ 6.85%, due 2015, callable at or above par 333.2 367.6
Notes @ 7.625% due 2011, callable at or above par 225.1 325.0
Notes @ 5.859% due 2009 150.0 —
Notes @ 5.997% due 2008 — 175.0
Junior Subordinated Debt Securities @ 7.405% due 2038 226.5 250.0
Medium-term Notes @ 7.0% to 7.2% due 2023 to 2028, non-callable 62.0 62.0
Total $ 2,515.2 $ 2,659.6
The 5.859% notes due 2009 and the junior subordinated debt securities due 2038 are callable under limited, specified circumstances.
The remaining callable debt may be redeemed, in whole or in part, at any time. Collateralized debt, which consists of the senior secured
notes, ranks highest in priority, followed by unsecured notes, which consists of notes and medium-term notes, followed by junior
subordinated debt securities. The aggregate contractual principal maturities are $150.0 million in 2009, $225.1 million in 2011, and
$2,140.4 million in 2015 and thereafter.
In October 2007, Northwind Holdings, LLC (Northwind Holdings), a wholly-owned subsidiary of Unum Group, issued $800.0 million
of insured, senior, secured notes due 2037 (the Northwind notes) in a private offering. The Northwind notes bear interest at a floating rate
equal to the three-month London Interbank Offered Rate (LIBOR) plus 0.78%. Northwind Holdings contributed the $800.0 million proceeds
from the issuance of the Northwind notes to Northwind Reinsurance Company (Northwind Re), the sole subsidiary of Northwind Holdings,
as a capital contribution. Northwind Re deposited the funds in a funding sub account (the Northwind Re funding sub account). No further
deposits will be made into the Northwind Re funding sub account.