Unum 2013 Annual Report Download - page 77

UNUM 2013 ANNUAL REPORT / 75
Commitments
The following table summarizes contractual obligations and our reinsurance recoverable by period as of December 31, 2013:
In 1 Year After 1 Year After 3 Years
(in millions of dollars) Total or Less up to 3 Years up to 5 Years After 5 Years
Payments Due
Short-term Debt $ 76.5 $ 76.5 $ — $ — $ —
Long-term Debt 4,357.3 143.2 905.5 400.2 2,908.4
Policyholder Liabilities 42,573.8 4,585.6 6,822.5 5,176.2 25,989.5
Pension and Other Postretirement Benefits 647.8 22.1 39.7 39.2 546.8
Miscellaneous Liabilities 567.2 510.2 16.3 11.7 29.0
Operating Leases 213.9 40.7 50.3 34.3 88.6
Purchase Obligations 331.3 321.3 9.8 0.2 —
Total $48,767.8 $5,699.6 $7,844.1 $5,661.8 $29,562.3
Receipts Due
Reinsurance Recoverable $ 7,692.6 $ 295.3 $ 653.8 $ 534.3 $ 6,209.2
Long-term debt includes contractual principal and interest payments and therefore exceeds the amount shown in the consolidated balance
sheets. See Note 8 of the “Notes to Consolidated Financial Statements” contained herein for additional information on our debt.
Policyholder liability maturities and the related reinsurance recoverable represent the projected payout of the current in-force
policyholder liabilities and the expected cash inflows from reinsurers for liabilities ceded and therefore incorporate uncertainties as to the
timing and amount of claim payments. We utilize extensive liability modeling to project future cash flows from the in-force business.
The primary assumptions used to project future cash flows are claim incidence rates for mortality and morbidity, claim resolution rates,
persistency rates, and interest rates. These cash flows are discounted to determine the current value of the projected claim payments.
The timing and amount of payments on policyholder liabilities may vary significantly from the projections above. See our previous
discussion of asset and liability management under “Investments” and Note 1 of the “Notes to Consolidated Financial Statements”
contained herein for additional information.
Pensions and other postretirement benefit obligations include our defined benefit pension and postretirement plans for our employees,
including non-qualified pension plans. Pension plan obligations, other than the non-qualified plans, represent our expected required regulatory
contributions which at December 31, 2013 totaled $2.3 million. Non-qualified pension plan and other postretirement benefit obligations
represent the expected benefit payments related to these plans. See Note 9 of the “Notes to Consolidated Financial Statements” and
“Critical Accounting Estimates” contained herein for additional information.
Miscellaneous liabilities include commissions due and accrued, deferred compensation liabilities, state premium taxes payable,
amounts due to reinsurance companies, accounts payable, obligations to return unrestricted cash collateral to our derivatives
counterparties, commitments to fund tax credit partnership investments, and various other liabilities that represent contractual
obligations. Obligations where the timing of the payment was uncertain are included in the one year or less category. See Note 4
of the “Notes to Consolidated Financial Statements” contained herein for additional information on our derivatives.