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Unum 2011 Annual Report
Unum
2011
41
The non-GAAP financial measures of “operating revenue,” “operating income” or “operating loss,” and “after-tax operating income”
differ from revenue, income (loss) before income tax, and net income as presented in our consolidated operating results and in income
statements prepared in accordance with GAAP due to the exclusion of before-tax realized investment gains and losses and certain other
items.
A reconciliation of operating revenue by segment to revenue and operating income by segment to net income is as follows:
(in millions of dollars)
Year Ended December 31
(in millions of dollars) 2011 2010 2009
Operating Revenue by Segment $10,282.9 $10,168.5 $10,079.3
Net Realized Investment Gain (Loss) (4.9) 24.7 11.7
Revenue $10,278.0 $10,193.2 $10,091.0
Operating Income by Segment
$ 262.1 $ 1,306.6 $ 1,280.6
Net Realized Investment Gain (Loss) (4.9) 24.7 11.7
Income Tax 21.8 445.2 439.7
Net Income
$ 235.4 $ 886.1 $ 852.6
As previously noted, included in before-tax “Operating Income by Segment” shown in the preceding chart are certain other items
which we may at times exclude from our discussion of financial ratios and metrics in order to enhance the understanding and comparability
of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur.
Excluding the before-tax charges of $289.8 million to recognize an impairment of our long-term care deferred acquisition costs and
$573.6 million and $183.5 million to increase reserves in our long-term care and individual disability closed blocks, respectively, our
operating income by segment is $1,309.0 million for 2011. The after-tax impacts of these charges, as well as certain other items, are
reflected in the following reconciliation of after-tax operating income to net income:
Year Ended December 31
2011 2010 2009
(in millions) per share* (in millions) per share* (in millions) per share*
After-tax Operating Income $ 896.8 $ 2.95 $880.6 $ 2.69 $852.4 $2.57
Deferred Acquisition Costs Impairment
and Reserve Charges for Long-term
Care Closed Block (561.2) (1.85) — — — —
Reserve Charge for Individual
Disability Closed Block (119.3) (0.39) — — — —
Tax Reduction from IRS Settlement 41.3 0.14 — — — —
Tax Related to U.K. Repatriation (18.6) (0.06) — — — —
Tax Related to Healthcare Reform Legislation — — (10.2) (0.03) — —
Net Realized Investment Gain (Loss) (4.9) (0.01) 24.7 0.08 11.7 0.04
Income Tax (Benefit) on Net Realized
Investment Gain (Loss) (1.3) — 9.0 0.03 11.5 0.04
Net Income $ 235.4 $ 0.78 $886.1 $ 2.71 $852.6 $2.57
*Assuming Dilution