Unum 2011 Annual Report Download - page 146

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Notes To Consolidated Financial Statements
Unum 2011 Annual Report
144
Level 1 equity and fixed income securities consist of individual holdings and funds that are valued based on unadjusted quoted prices
from active markets for identical securities. Level 2 equity securities consist of funds that are valued based on the net asset value (NAV) of
the underlying holdings. These investments have no unfunded commitments and no specific redemption restrictions. Level 2 fixed income
securities are valued using observable inputs through market corroborated pricing.
Alternative investments are valued based on the NAV of the underlying holdings in a period ranging from one month to one quarter
in arrears. We evaluate the need for adjustments to the NAV based on market conditions and discussions with fund managers in the period
subsequent to the valuation date and prior to issuance of the financial statements. We made no adjustments to the NAV for 2011 or 2010.
The hedge funds of funds have no redemption restrictions. The private equity funds of funds cannot be redeemed by investors, and
distributions are received following the maturity of the underlying assets. It is estimated that these underlying assets will begin to mature
between five and eight years from the date of initial investment.
Changes in our U.S. pension plans’ assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
during the years ended December 31, 2011 and 2010 are as follows:
Year Ended December 31, 2011
Actual Return on Plan Assets Level 3 Transfers
Beginning Held at Sold During End
(in millions of dollars) of Year Year End the Year Purchases Sales Into Out of of Year
Private Equity Funds of Funds $15.0 $ 3.0 $ — $ 6.5 $(0.8) $— $— $23.7
Hedge Funds of Funds 46.0 (1.6) (0.1) 6.9 (6.9) — — 44.3
Total $61.0 $ 1.4 $(0.1) $13.4 $(7.7) $— $— $68.0
Year Ended December 31, 2010
Actual Return on Plan Assets Level 3 Transfers
Beginning Held at Sold During End
(in millions of dollars) of Year Year End the Year Purchases Sales Into Out of of Year
Private Equity Funds of Funds $ 8.2 $0.6 $— $ 6.2 $— $— $— $15.0
Hedge Funds of Funds 37.8 2.8 — 5.4 — — — 46.0
Total $46.0 $3.4 $— $11.6 $— $— $— $61.0