Unum 2007 Annual Report Download - page 134

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Notes to Consolidated Financial Statements
132 Unum 2007 Annual Report
Assets by segment are as follows:
December 31
(in millions of dollars) 2007 2006
Unum US $ 21,012.8 $ 20,900.8
Unum UK 4,016.5 3,904.2
Colonial Life 2,518.5 2,355.0
Individual Disability — Closed Block 15,175.6 15,609.5
Other 7,870.3 8,998.8
Corporate 1,839.0 942.0
Discontinued Operations — 113.0
Total $ 52,432.7 $ 52,823.3
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, 2007, the aggregate net
minimum lease payments were $108.8 million payable as follows: $26.7 million in 2008, $25.1 million in 2009, $18.4 million in 2010,
$11.7 million in 2011, $8.8 million in 2012, and $18.1 million thereafter. Rental expense for the years ended December 31, 2007, 2006,
and 2005 was $35.7 million, $35.8 million, and $33.9 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, and the outcome of the matters is uncertain. An
estimated loss is accrued when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
Unless indicated otherwise, reserves have not been established for these matters.