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Notes To Consolidated Financial Statements
102 UNUM 2012 ANNUAL REPORT
The cumulative effect of the adoption as of January 1, 2010, was a decrease to stockholders’ equity of $455.1 million. The following table
summarizes the effects on our financial statements.
Year Ended December 31
2011 2010
Historical Historical
Accounting As Effect Accounting As Effect
(in millions of dollars, except share data) Method Adjusted of Change Method Adjusted of Change
Consolidated Statements of Income
Deferral of Acquisition Costs $ (628.3) $ (442.5) $ 185.8 $ (607.7) $ (422.5) $ 185.2
Amortization of Deferred Acquisition Costs 533.8 365.7 (168.1) 547.1 373.3 (173.8)
Impairment of Deferred Acquisition Costs 289.8 196.0 (93.8) — — —
Income Tax (Benefit) — Deferred (208.7) (181.4) 27.3 144.2 140.2 (4.0)
Net Income 235.4 284.2 48.8 886.1 878.7 (7.4)
Net Income Per Common Share
Basic 0.78 0.94 0.16 2.72 2.70 (0.02)
Assuming Dilution 0.78 0.94 0.16 2.71 2.69 (0.02)
Consolidated Statements of Comprehensive Income
Net Income $ 235.4 $ 284.2 $ 48.8 $ 886.1 $ 878.7 $ (7.4)
Change in Adjustment to Reserves for
Future Policy and Contract Benefits,
Net of Reinsurance and Other (1,324.4) (1,321.1) 3.3 (950.9) (948.3) 2.6
Change in Foreign Currency Translation Adjustment (10.6) (10.5) 0.1 (32.2) (31.8) 0.4
Consolidated Statements of Stockholders’ Equity
Accumulated Other Comprehensive Income
Balance at Beginning of Year $ 341.9 $ 351.4 $ 9.5 $ 341.0 $ 347.5 $ 6.5
Change During Year 107.0 110.4 3.4 0.9 3.9 3.0
Retained Earnings
Balance at Beginning of Year 7,060.8 6,591.8 (469.0) 6,289.5 5,827.9 (461.6)
Net Income 235.4 284.2 48.8 886.1 878.7 (7.4)
Consolidated Statements of Cash Flows
Net Income $ 235.4 $ 284.2 $ 48.8 $ 886.1 $ 878.7 $ (7.4)
Change in Deferred Acquisition Costs (94.5) (76.8) 17.7 (60.6) (49.2) 11.4
Impairment of Deferred Acquisition Costs 289.8 196.0 (93.8) — — —
Change in Income Taxes (301.7) (274.4) 27.3 164.3 160.3 (4.0)
December 31, 2011
Consolidated Balance Sheets
Deferred Acquisition Costs $ 2,300.9 $ 1,677.1 $(623.8)
Deferred Income Tax 261.2 44.7 (216.5)
Net Unrealized Gain on Securities
Not Other-Than-Temporarily Impaired 605.8 614.8 9.0
Foreign Currency Translation Adjustment (121.5) (117.6) 3.9
Retained Earnings 7,031.2 6,611.0 (420.2)