Unum 2008 Annual Report Download - page 146

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Assets by segment are as follows:
December 31
(in millions of dollars)  2007

Unum US  $21,150.4
Unum UK   3,882.4
Colonial Life   2,518.5
Individual Disability — Closed Block   15,302.3
Corporate and Other  9,848.3
  $52,701.9
Revenue is primarily derived from sources in the United States and the United Kingdom. There are no material revenues or assets
attributable to foreign operations other than those reported in Unum UK.
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.
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Commitments
We have noncancelable lease obligations on certain office space and equipment. As of December 31, 2008, the aggregate net minimum
lease payments were $95.6 million payable as follows: $26.6 million in 2009, $23.0 million in 2010, $14.5 million in 2011, $11.0 million in 2012,
$7.0 million in 2013, and $13.5 million thereafter. Rental expense for the years ended December 31, 2008, 2007, and 2006 was $34.5 million,
$35.7 million, and $35.8 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. On a
quarterly and annual basis, we review relevant information with respect to litigation and contingencies to be reflected in our consolidated
financial statements. 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.
In the disclosures that follow about litigation, we refer to the name of the company specified in the original complaint, following the
practice in the courts. Therefore, references to UnumProvident Corporation should be understood as references to Unum Group.