Unum 2007 Annual Report Download - page 83

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Unum 2007 Annual Report 81
Commitments
The following table summarizes contractual obligations and our reinsurance recoverable by period as of December 31, 2007 (in millions
of dollars). Excluded from the table are tax liabilities of approximately $168.5 million for which we are unable to make reasonably reliable
estimates of the period of potential cash settlements, if any, with taxing authorities.
In 1 Year After 1 Year After 3 Years
Total or Less up to 3 Years up to 5 Years After 5 Years
Payments Due
Short-term Debt $ 180.2 $ 180.2 $ — $ — $ —
Long-term Debt 5,410.0 152.7 433.2 493.5 4,330.6
Policyholder Liabilities 39,292.7 4,549.1 6,605.2 4,976.7 23,161.7
Pensions and Other Postretirement Benefits 1,973.7 64.7 131.9 134.3 1,642.8
Miscellaneous Liabilities 253.9 220.9 4.7 7.0 21.3
Operating Leases 108.8 26.7 43.5 20.5 18.1
Purchase Obligations 73.1 72.2 0.9 — —
Total $ 47,292.4 $ 5,266.5 $ 7,219.4 $ 5,632.0 $ 29,174.5
Receipts Due
Reinsurance Recoverable $ 7,644.3 $ 337.4 $ 570.4 $ 511.5 $ 6,225.0
Short-term and long-term debt includes contractual principal and interest payments and therefore exceeds the amount shown in the
consolidated balance sheet. See Note 9 of the “Notes to Consolidated Financial Statements” for additional information.
Policyholder liability maturities and the related reinsurance recoverable represent the projected payout of the current inforce
policyholder liabilities and the expected cash inflows from reinsurers for liabilities ceded and therefore incorporate uncertainties as to
the timing and amount of claim payments. We utilize extensive liability modeling to project future cash flows from the inforce business.
The primary assumptions used to project future cash flows are claim incidence rates for mortality and morbidity, claim resolution rates,
persistency rates, and interest rates. These cash flows are discounted to determine the current value of the projected claim payments.
The timing and amount of payments on policyholder liabilities may vary significantly from the projections above. See our previous
discussion of asset/liability management under “Investments” contained herein.
Pensions and other postretirement benefit obligations include our defined benefit pension and postretirement plans for our employees,
including non-qualified pension plans. Pension plan obligations, other than the non-qualified plans, represent our contributions to the
pension plans, with the next 12 months’ contributions equaling our planned contributions and the remaining years’ contributions projected
based on the average remaining service period assuming the current funded status of the plans. Non-qualified pension plan and other
postretirement benefit obligations represent the expected benefit payments related to these plans, discounted with respect to interest and
reflecting expected future service, as appropriate. See Note 10 of the “Notes to Consolidated Financial Statements” and “Critical
Accounting Estimates” contained herein for additional information.