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UNUM 2013 ANNUAL REPORT / 159
The following table provides the changes in deferred acquisition costs by segment:
(in millions of dollars) Unum US Unum UK Colonial Life Closed Block Total
Year Ended December 31, 2013
Beginning of Year $1,024.3 $ 38.8 $ 692.4 $ — $1,755.5
Capitalized 252.0 9.8 205.0 — 466.8
Amortization (230.0) (14.7) (174.2) — (418.9)
Adjustment Related to Unrealized Investment Gains/Losses 5.2 — 20.2 — 25.4
Foreign Currency — 0.4 — — 0.4
End of Year $1,051.5 $ 34.3 $ 743.4 $ — $1,829.2
Year Ended December 31, 2012
Beginning of Year $ 971.8 $ 40.9 $ 664.4 $ — $1,677.1
Capitalized 249.2 11.8 206.3 — 467.3
Amortization (196.5) (15.7) (166.5) — (378.7)
Adjustment Related to Unrealized Investment Gains/Losses (0.2) — (11.8) — (12.0)
Foreign Currency — 1.8 — — 1.8
End of Year $1,024.3 $ 38.8 $ 692.4 $ — $1,755.5
Year Ended December 31, 2011
Beginning of Year $ 943.7 $ 41.0 $ 628.0 $ 203.4 $1,816.1
Capitalized 220.3 15.4 203.1 3.7 442.5
Amortization (188.1) (15.3) (151.2) (11.1) (365.7)
Impairment of Long-term Care Deferred Acquisition Costs — — — (196.0) (196.0)
Adjustment Related to Unrealized Investment Gains/Losses (4.1) — (15.5) — (19.6)
Foreign Currency — (0.2) — — (0.2)
End of Year $ 971.8 $ 40.9 $ 664.4 $ — $1,677.1
Assets by segment are as follows:
December 31
(in millions of dollars) 2013 2012
Unum US $18,384.3 $19,391.2
Unum UK 3,654.1 3,975.8
Colonial Life 3,482.9 3,434.9
Closed Block 31,564.2 33,069.2
Corporate
2,318.1 2,365.0
Total $59,403.6 $62,236.1
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 our Unum UK segment.
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. At December 31, 2013 and 2012, goodwill was $200.9 million and $201.7 million, respectively, with
$189.0 million attributable to Unum US and the remainder attributable to Unum UK.
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.