Unum 2013 Annual Report Download - page 139

UNUM 2013 ANNUAL REPORT / 137
Tax years subsequent to 2008 remain subject to examination by tax authorities in the U.S., and tax years subsequent to 2010 remain
subject to examination in major foreign jurisdictions. We believe sufficient provision has been made for all potential adjustments for years
that are not closed by the statute of limitations in all major tax jurisdictions and that any such adjustments would not have a material
adverse effect on our financial position, liquidity, or results of operations.
In January 2013, the American Taxpayer Relief Act retroactively reinstated the active financing income exemption to the beginning
of 2012 which affects the amount of earnings from foreign subsidiaries that is taxed annually, regardless of whether foreign earnings are
repatriated. Our 2012 income tax expense reflected the taxation of all active financing income from our foreign subsidiaries as required
under the law in place prior to the reinstatement. In 2013, we reversed the amounts recorded in 2012 and recorded a reduction in income
tax expense of $0.9 million to reflect the reinstatement of the exemption of active financing income. The active financing income
exemption expired again for tax years beginning on or after January 1, 2014, the effect of which is expected to be immaterial in 2014.
As of December 31, 2013 and 2012, we had no net operating loss carryforward for U.S. income taxes. We record a valuation allowance
to reduce deferred tax assets to the amount that is more likely than not to be realized. As of December 31, 2013 and 2012, we had no
valuation allowance. In 2011, as part of an IRS settlement, we released a $4.1 million valuation allowance related to basis differences in
foreign subsidiaries and net operating loss carryforwards in foreign jurisdictions.
Total income taxes paid net of refunds during 2013, 2012, and 2011 were $398.1 million, $185.0 million, and $303.5 million, respectively.
Note 8. Debt
Long-term and short-term debt consists of the following:
December 31
(in millions of dollars) 2013 2012
Long-term Debt
Senior Secured Notes, variable due 2037, callable at or above par $ 440.0 $ 500.0
Senior Secured Notes, variable due 2036, callable at or above par — 62.5
Notes @ 5.75% due 2042, callable at or above par 248.6 248.6
Notes @ 7.375% due 2032, callable at or above par 39.5 39.5
Notes @ 6.75% due 2028, callable at or above par 165.8 165.8
Notes @ 7.25% due 2028, callable at or above par 200.0 200.0
Notes @ 5.625% due 2020, callable at or above par 399.7 399.6
Notes @ 7.125% due 2016, callable at or above par 350.0 350.0
Notes @ 6.85% due 2015, callable at or above par 296.8 296.7
Notes @ 7.0% due 2018, non-callable 200.0 200.0
Medium-term Notes @ 7.0% to 7.2% due 2023 to 2028, non-callable 50.8 50.8
Junior Subordinated Debt Securities @ 7.405% due 2038 226.5 226.5
Fair Value Hedges Adjustment (5.7) 15.4
Total 2,612.0 2,755.4
Short-term Debt
Securities Lending Agreements — See Note 3 76.5 455.8
Total $2,688.5 $3,211.2