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Segment Information | 12 Months Ended
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Dec. 31, 2011
Segment Reporting [Abstract] |
Segment Information | Segment Information We have three major business segments: Unum US, Unum UK, and Colonial Life. Our other segments are the Closed Block segment and the Corporate Segment. Effective December 31, 2011, we made certain changes to our segment classifications, described as follows. Prior period segment results have been restated to reflect these changes in reporting classifications. The Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business, comprised of recently issued disability insurance and voluntary benefits products. These products are marketed through our field sales personnel who work in conjunction with independent brokers and consultants. The Unum UK segment includes insurance for group long-term disability, group life, and supplemental and voluntary lines of business. The supplemental and voluntary lines of business are comprised of individual disability, critical illness, and voluntary benefits products. Unum UK's products are sold primarily in the United Kingdom through field sales personnel and independent brokers and consultants. The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products marketed to employees at the workplace through an agency sales force and brokers. The Closed Block segment, which previously included only our closed block of individual disability products, now also includes our long-term care line of business, previously reported in the Unum US segment, and certain other insurance products which were previously included in our Corporate and Other segment, which is now named Corporate. The individual disability line of business in our Closed Block segment generally consists of those policies in-force before the substantial changes in product offerings, pricing, distribution, and underwriting, which generally occurred during the period 1994 through 1998. A small amount of new business continued to be sold after these changes, but we stopped selling new individual disability policies in this segment at the beginning of 2004 other than update features contractually allowable on existing policies. Long-term care includes both the group and individual long-term care product lines. The other insurance products line of business consists of certain other products no longer actively marketed, including individual life and corporate-owned life insurance, reinsurance pools and management operations, group pension, health insurance, and individual annuities. We reclassified our long-term care products from the Unum US segment to the Closed Block segment following completion of a 2011 comprehensive and strategic review of our long-term care business. We had previously discontinued selling individual long-term care in 2009, and in February 2012 we announced that we would discontinue selling group long-term care as well. Because both group and individual long-term care are now considered closed blocks of business, we reclassified these products to the Closed Block segment. We also reclassified our other insurance products not actively marketed to the Closed Block segment. The inclusion of all closed blocks of business into one operating segment aligns with our reporting and monitoring of our closed blocks of business within a discrete segment and is consistent with our separation of these blocks of business from the lines of business which actively market new products. Included in 2011 segment results for the Closed Block are a charge related to the impairment of long-term care deferred acquisition costs and reserve charges for our long-term care and individual disability closed blocks of business. See Note 5 for further discussion. The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt other than non-recourse debt, and certain other corporate income and expense not allocated to a line of business. In the following segment financial data, "operating revenue" excludes net realized investment gains and losses. "Operating income" or "operating loss" excludes net realized investment gains and losses and income tax. These are considered non-GAAP financial measures. These non-GAAP financial measures of "operating revenue" and "operating income" or "operating loss" differ from revenue and income before income tax as presented in our consolidated statements of income prepared in accordance with GAAP due to the exclusion of before-tax realized investment gains and losses. We measure segment performance excluding realized investment gains and losses because we believe that this performance measure is a better indicator of the ongoing businesses and the underlying trends in the businesses. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains and losses, and a long-term focus is necessary to maintain profitability over the life of the business. Realized investment gains and losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. However, income or loss excluding realized investment gains and losses does not replace net income or net loss as a measure of overall profitability. We may experience realized investment losses, which will affect future earnings levels since our underlying business is long-term in nature and we need to earn the assumed interest rates in our liabilities. A reconciliation of total operating revenue and operating income by segment to revenue and net income as reported in our consolidated statements of income follows:
| Year Ended December 31
| 2011 |  | 2010 |  | 2009
| (in millions of dollars)
Operating Revenue by Segment | $ | 10,282.9 |  |  | $ | 10,168.5 |  |  | $ | 10,079.3 |
Net Realized Investment Gain (Loss) | (4.9 | ) |  | 24.7 |  |  | 11.7 |
Revenue | $ | 10,278.0 |  |  | $ | 10,193.2 |  |  | $ | 10,091.0 |
Operating Income by Segment | $ | 262.1 |  |  | $ | 1,306.6 |  |  | $ | 1,280.6 |
Net Realized Investment Gain (Loss) | (4.9 | ) |  | 24.7 |  |  | 11.7 |
Income Tax | 21.8 |  |  | 445.2 |  |  | 439.7 |
Net Income | $ | 235.4 |  |  | $ | 886.1 |  |  | $ | 852.6 |
Premium income by major line of business within each of our segments is presented as follows.
| Year Ended December 31
| 2011 |  | 2010 |  | 2009
| (in millions of dollars)
Unum US |  |  |  |  |
Group Disability |  |  |  |  |
Group Long-term Disability | $ | 1,580.2 |  |  | $ | 1,639.4 |  |  | $ | 1,726.9 |
Group Short-term Disability | 455.2 |  |  | 430.9 |  |  | 432.8 |
Group Life and Accidental Death & Dismemberment |  |  |  |  |
Group Life | 1,106.7 |  |  | 1,090.3 |  |  | 1,057.7 |
Accidental Death & Dismemberment | 109.2 |  |  | 106.1 |  |  | 104.9 |
Supplemental and Voluntary |  |  |  |  |
Individual Disability - Recently Issued | 464.7 |  |  | 457.9 |  |  | 463.7 |
Voluntary Benefits | 580.0 |  |  | 530.8 |  |  | 492.4 |
| 4,296.0 |  |  | 4,255.4 |  |  | 4,278.4 |
Unum UK |  |  |  |  |
Group Long-term Disability | 419.6 |  |  | 421.2 |  |  | 482.4 |
Group Life | 203.6 |  |  | 171.6 |  |  | 147.8 |
Supplemental and Voluntary | 64.4 |  |  | 57.8 |  |  | 55.9 |
| 687.6 |  |  | 650.6 |  |  | 686.1 |
Colonial Life |  |  |  |  |
Accident, Sickness, and Disability | 695.3 |  |  | 661.0 |  |  | 625.8 |
Life | 190.7 |  |  | 176.5 |  |  | 165.6 |
Cancer and Critical Illness | 249.3 |  |  | 238.2 |  |  | 223.7 |
| 1,135.3 |  |  | 1,075.7 |  |  | 1,015.1 |
Closed Block |  |  |  |  |
Individual Disability | 787.0 |  |  | 847.0 |  |  | 898.5 |
Long-term Care | 608.1 |  |  | 599.2 |  |  | 594.7 |
All Other | 0.2 |  |  | 3.5 |  |  | 2.7 |
| 1,395.3 |  |  | 1,449.7 |  |  | 1,495.9 |
Total | $ | 7,514.2 |  |  | $ | 7,431.4 |  |  | $ | 7,475.5 |
Selected operating statement data by segment is presented as follows:
| Unum US |  | Unum UK |  | Colonial Life |  | Closed Block |  | Corporate |  | Total
| (in millions of dollars)
Year Ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 4,296.0 |  |  | $ | 687.6 |  |  | $ | 1,135.3 |  |  | $ | 1,395.3 |  |  | $ | — |  |  | $ | 7,514.2 |
Net Investment Income | 951.4 |  |  | 189.9 |  |  | 132.4 |  |  | 1,189.7 |  |  | 56.2 |  |  | 2,519.6 |
Other Income | 121.6 |  |  | 0.3 |  |  | 0.5 |  |  | 106.1 |  |  | 20.6 |  |  | 249.1 |
Operating Revenue | $ | 5,369.0 |  |  | $ | 877.8 |  |  | $ | 1,268.2 |  |  | $ | 2,691.1 |  |  | $ | 76.8 |  |  | $ | 10,282.9 |
Operating Income (Loss) | $ | 819.8 |  |  | $ | 192.0 |  |  | $ | 282.1 |  |  | $ | (921.5 | ) |  | $ | (110.3 | ) |  | $ | 262.1 |
Interest and Debt Expense | $ | 1.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 10.5 |  |  | $ | 131.8 |  |  | $ | 143.3 |
Depreciation and Amortization | $ | 356.5 |  |  | $ | 40.7 |  |  | $ | 202.4 |  |  | $ | 22.7 |  |  | $ | 0.8 |  |  | $ | 623.1 |
Year Ended December 31, 2010 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 4,255.4 |  |  | $ | 650.6 |  |  | $ | 1,075.7 |  |  | $ | 1,449.7 |  |  | $ | — |  |  | $ | 7,431.4 |
Net Investment Income | 941.5 |  |  | 170.5 |  |  | 122.5 |  |  | 1,166.4 |  |  | 94.6 |  |  | 2,495.5 |
Other Income | 122.8 |  |  | 1.2 |  |  | 0.7 |  |  | 113.6 |  |  | 3.3 |  |  | 241.6 |
Operating Revenue | $ | 5,319.7 |  |  | $ | 822.3 |  |  | $ | 1,198.9 |  |  | $ | 2,729.7 |  |  | $ | 97.9 |  |  | $ | 10,168.5 |
Operating Income (Loss) | $ | 769.1 |  |  | $ | 208.8 |  |  | $ | 282.2 |  |  | $ | 117.6 |  |  | $ | (71.1 | ) |  | $ | 1,306.6 |
Interest and Debt Expense | $ | 1.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 11.7 |  |  | $ | 128.9 |  |  | $ | 141.8 |
Depreciation and Amortization | $ | 360.9 |  |  | $ | 38.2 |  |  | $ | 200.1 |  |  | $ | 31.6 |  |  | $ | 1.1 |  |  | $ | 631.9 |
Year Ended December 31, 2009 |  |  |  |  |  |  |  |  |  |  |
Premium Income | $ | 4,278.4 |  |  | $ | 686.1 |  |  | $ | 1,015.1 |  |  | $ | 1,495.9 |  |  | $ | — |  |  | $ | 7,475.5 |
Net Investment Income | 934.3 |  |  | 124.5 |  |  | 114.3 |  |  | 1,106.8 |  |  | 66.7 |  |  | 2,346.6 |
Other Income | 118.8 |  |  | 2.4 |  |  | 0.5 |  |  | 131.1 |  |  | 4.4 |  |  | 257.2 |
Operating Revenue | $ | 5,331.5 |  |  | $ | 813.0 |  |  | $ | 1,129.9 |  |  | $ | 2,733.8 |  |  | $ | 71.1 |  |  | $ | 10,079.3 |
Operating Income (Loss) | $ | 717.6 |  |  | $ | 249.6 |  |  | $ | 280.9 |  |  | $ | 124.4 |  |  | $ | (91.9 | ) |  | $ | 1,280.6 |
Interest and Debt Expense | $ | 2.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 16.6 |  |  | $ | 106.8 |  |  | $ | 125.4 |
Depreciation and Amortization | $ | 344.7 |  |  | $ | 42.4 |  |  | $ | 192.0 |  |  | $ | 29.6 |  |  | $ | 1.6 |  |  | $ | 610.3 |
The following table provides the changes in deferred acquisition costs by segment:
|  |  |  |  | Colonial |  | Closed |  |
| Unum US |  | Unum UK |  | Life |  | Block |  | Total
| (in millions of dollars)
Year Ended December 31, 2011 |  |  |  |  |  |  |  |  |
Beginning of Year | $ | 1,362.2 |  |  | $ | 58.2 |  |  | $ | 805.0 |  |  | $ | 295.7 |  |  | $ | 2,521.1 |
Capitalized | 333.8 |  |  | 30.6 |  |  | 252.9 |  |  | 11.0 |  |  | 628.3 |
Amortization | (298.7 | ) |  | (29.2 | ) |  | (189.0 | ) |  | (16.9 | ) |  | (533.8 | )
Impairment of Long-term Care Deferred Acquisition Costs | — |  |  | — |  |  | — |  |  | (289.8 | ) |  | (289.8 | )
Adjustment Related to Unrealized Investment Gains/Losses | (5.0 | ) |  | — |  |  | (19.7 | ) |  | — |  |  | (24.7 | )
Foreign Currency | — |  |  | (0.2 | ) |  | — |  |  | — |  |  | (0.2 | )
End of Year | $ | 1,392.3 |  |  | $ | 59.4 |  |  | $ | 849.2 |  |  | $ | — |  |  | $ | 2,300.9 |
Year Ended December 31, 2010 |  |  |  |  |  |  |  |  |
Beginning of Year | $ | 1,351.5 |  |  | $ | 58.9 |  |  | $ | 761.2 |  |  | $ | 310.9 |  |  | $ | 2,482.5 |
Capitalized | 323.2 |  |  | 28.3 |  |  | 246.4 |  |  | 9.8 |  |  | 607.7 |
Amortization | (307.9 | ) |  | (27.0 | ) |  | (187.2 | ) |  | (25.0 | ) |  | (547.1 | )
Adjustment Related to Unrealized Investment Gains/Losses | (4.6 | ) |  | — |  |  | (15.4 | ) |  | — |  |  | (20.0 | )
Foreign Currency | — |  |  | (2.0 | ) |  | — |  |  | — |  |  | (2.0 | )
End of Year | $ | 1,362.2 |  |  | $ | 58.2 |  |  | $ | 805.0 |  |  | $ | 295.7 |  |  | $ | 2,521.1 |
Year Ended December 31, 2009 |  |  |  |  |  |  |  |  |
Beginning of Year | $ | 1,341.4 |  |  | $ | 54.7 |  |  | $ | 755.9 |  |  | $ | 320.4 |  |  | $ | 2,472.4 |
Capitalized | 321.6 |  |  | 29.1 |  |  | 229.0 |  |  | 13.9 |  |  | 593.6 |
Amortization | (293.8 | ) |  | (30.5 | ) |  | (178.5 | ) |  | (23.4 | ) |  | (526.2 | )
Adjustment Related to Unrealized Investment Gains/Losses | (17.7 | ) |  | — |  |  | (45.2 | ) |  | — |  |  | (62.9 | )
Foreign Currency | — |  |  | 5.6 |  |  | — |  |  | — |  |  | 5.6 |
End of Year | $ | 1,351.5 |  |  | $ | 58.9 |  |  | $ | 761.2 |  |  | $ | 310.9 |  |  | $ | 2,482.5 |
Assets by segment are as follows:
| December 31
| 2011 |  | 2010
| (in millions of dollars)
Unum US | $ | 19,004.1 |  |  | $ | 18,572.1 |
Unum UK | 3,568.1 |  |  | 3,386.3 |
Colonial Life | 3,352.5 |  |  | 3,047.3 |
Closed Block | 31,439.5 |  |  | 29,418.7 |
Corporate | 2,814.8 |  |  | 2,883.3 |
Total | $ | 60,179.0 |  |  | $ | 57,307.7 |
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 both December 31, 2011 and 2010, goodwill was $201.2 million, with $190.0 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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