Unum 2015 Annual Report Download - page 160

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Notes To Consolidated Financial Statements
158 Unum 2015 Annual Report
A reconciliation of “operating revenue” to total revenue and “operating income” to income before income tax is as follows:
Year Ended December 31
(in millions of dollars) 2015 2014 2013
Operating Revenue $10,775.1 $10,508.4 $10,361.8
Net Realized Investment Gain (Loss) (43.8) 16.1 6.8
Total Revenue $10,731.3 $10,524.5 $10,368.6
Operating Income $ 1,294.0 $ 1,307.3 $ 1,256.6
Net Realized Investment Gain (Loss) (43.8) 16.1 6.8
Non-operating Retirement-related Loss (11.9) (70.0) (32.9)
Costs Related to Early Retirement of Debt for Corporate — (13.2) —
Long-term Care Reserve Increase for Closed Block — (698.2) —
Unclaimed Death Benefits Reserve Increase for Unum US — — (75.4)
Unclaimed Death Benefits Reserve Increase for Colonial Life — — (20.1)
Group Life Waiver of Premium Benefit Reserve Reduction for Unum US — — 85.0
Income Before Income Tax $ 1,238.3 $ 542.0 $ 1,220.0
Note 14. Commitments and Contingent Liabilities
Commitments
We have noncancelable lease obligations on certain office space and equipment. As of December 31, 2015, the aggregate net minimum
lease payments were $220.9 million payable as follows: $56.8 million in 2016, $40.1 million in 2017, $21.4 million in 2018, $19.9 million
in 2019, $16.9 million in 2020, and $65.8 million thereafter. Rental expense for the years ended December 31, 2015, 2014, and 2013 was
$42.5 million, $44.2 million, and $44.1 million, respectively.
At December 31, 2015, we had unfunded commitments of $291.5 million for certain of our investments, the amount of which may or
may not be funded.
Contingent Liabilities
We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large
or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted
in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required
and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some
jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that
of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, we believe that
the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore,
the specific monetary relief sought is not stated.
Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated
loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.