XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Accounting Developments | 3 Months Ended
--- | ---
Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] |
Accounting Developments | Accounting Developments Accounting Updates Adopted in 2018:
Accounting Standards Codification (ASC) |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 230 "Statement of Cash Flows" |  | This update provided clarifying guidance intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addressed eight specific cash flow issues that relate to various types of transactions. The guidance is to be applied retrospectively. |  | January 1, 2018 |  | The adoption of this update resulted in the reclassification of certain cash inflows from investing activities to cash inflows from operating activities within our consolidated statements of cash flows. This reclassification related to cash distributions from equity method investees and the bifurcation of those distributions as either returns on investment or returns of investment. The adoption of this update had no effect on our financial position or results of operations. See the summary table below for the financial statement impacts of this retrospective adoption.
ASC 606 "Revenue from Contracts with Customers" |  | These updates superseded virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of these updates are insurance contracts, although our fee-based service products are included within the scope. Our fee-based service products, which are primarily sold in our Unum US segment, are reported in other income within our consolidated statements of income and represent less than one percent of our total revenue. The core principle of this guidance is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Accordingly, we continue to recognize revenue for these fee-based service products as services are rendered. The guidance is to be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. |  | January 1, 2018 |  | The adoption of these updates did not have an impact on our financial position or results of operations and did not result in expanded disclosures due to the immaterial nature of our fee-based service products relative to our overall business.
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 715 "Compensation - Retirement Benefits" |  | This update required the service cost component of net periodic pension and postretirement benefit costs to be included as a component of compensation costs in an entity's statement of income. Other components of net periodic pension and postretirement benefit costs are required to be presented separately from the service cost along with a disclosure identifying the line items in which these costs are presented in the statement of income. The amendments in this update are to be applied retrospectively or prospectively depending on the specific requirement of the update. |  | January 1, 2018 |  | The adoption of this update resulted in the reclassification of service cost from the other expenses line item to the compensation expense line item on our consolidated statements of income but had no effect on our financial position or results of operations. We elected to use the practical expedient for the retrospective application of this update. See the summary table below for the financial statement impacts of this retrospective adoption.
ASC 740 "Income Taxes" |  | This update eliminated the exception that required the tax effect of intra-entity asset transfers other than inventory to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. It required recognition of tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The guidance is to be applied retrospectively. |  | January 1, 2018 |  | The adoption of this update did not have an impact on our financial position or results of operations.
ASC 815 "Derivatives and Hedge Accounting" |  | This update provided targeted improvements to accounting for hedging activities for both nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements, eases certain documentation and effectiveness assessment requirements, and enhances transparency through expanded disclosures. For cash flow and net investment hedges existing at the date of adoption, the guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year the guidance is adopted. The amended presentation and disclosure guidance is required prospectively. Early adoption is permitted. |  | January 1, 2018 |  | We elected to early adopt this update. The adoption of this update did not have an impact on our financial position or results of operations; however, it expanded our disclosures. This update will also simplify hedge documentation requirements and expand available hedging strategies.
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 825 "Financial Instruments - Overall" |  | This update changed the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. Changes also included the modification of certain disclosures around the fair value of financial instruments, including the requirement for separate presentation of financial assets and liabilities by measurement category, as well as the elimination of certain disclosures around methods and significant assumptions used to estimate fair value. The guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year the guidance is adopted. |  | January 1, 2018 |  | See the summary table below for the financial statement impacts of this modified retrospective adoption on our financial statement line items at January 1, 2018.
Summary of Financial Statement Impacts of Accounting Updates Adopted in 2018:
| For the Three Months Ended March 31, 2017
| Historical Accounting Method |  | As Adjusted |  | Effect of Change
| (in millions of dollars)
Adjustments due to ASC 230 |  |  |  |  |
Consolidated Statements of Cash Flow |  |  |  |  |
Cash Flows from Operating Activities |  |  |  |  |
Other, Net | $ | 2.2 |  |  | $ | 4.4 |  |  | $ | 2.2 |
Cash Flows from Investing Activities |  |  |  |  |
Proceeds from Sales and Maturities of Other Investments | 48.7 |  |  | 46.5 |  |  | (2.2 | )
Adjustments due to ASC 715 |  |  |  |  |
Consolidated Statements of Income |  |  |  |  |
Compensation Expense | 207.0 |  |  | 209.0 |  |  | 2.0 |
Other Expenses | 230.8 |  |  | 228.8 |  |  | (2.0 | )
| Balance at December 31, 2017 |  | Balance at January 1, 2018 |  | Effect of Change
| (in millions of dollars)
Adjustments due to ASC 825 |  |  |  |  |
Consolidated Balance Sheets |  |  |  |  |
Assets |  |  |  |  |
Other Long-term Investments | $ | 646.8 |  |  | $ | 643.0 |  |  | $ | (3.8 | )
Liabilities |  |  |  |  |
Deferred Income Tax | 199.0 |  |  | 198.2 |  |  | (0.8 | )
Stockholders' Equity |  |  |  |  |
Accumulated Other Comprehensive Income (Loss) | 127.5 |  |  | 110.0 |  |  | (17.5 | )
Retained Earnings | 9,542.2 |  |  | 9,556.7 |  |  | 14.5 |
For the adoption of these updates, certain reclassifications have been made to prior year amounts in order to conform to current year presentation. Accounting Updates Outstanding:
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 220 "Income Statement - Reporting Comprehensive Income" |  | This update allows entities to make an accounting policy election to reclassify the stranded tax effects arising as a result of the recognition of the enactment of the tax bill, H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA) from accumulated other comprehensive income to retained earnings. Tax effects that are stranded in accumulated other comprehensive income for reasons other than the TCJA may not be reclassified. This update requires additional disclosures on whether an entity elects to reclassify the stranded tax effects and its policy for releasing tax effects from accumulated other comprehensive income. This guidance may be applied in the period of adoption or retrospectively to each period in which the effect of the change in federal income tax rate in the TCJA is recognized. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018; however, early adoption is permitted. |  | January 1, 2019 |  | We intended to early adopt this update effective January 1, 2018, but have chosen to now continue our evaluation of this potential adoption. If we elect to adopt this update, we will reclassify stranded tax effects resulting from the enactment of the TCJA from accumulated other comprehensive income to retained earnings and will apply the amendments as of January 1 in the year the election is made. In addition, we will be required to expand our disclosures.
ASC 310 "Receivables - Nonrefundable Fees and Other Costs" |  | This update shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. This update does not impact securities held at a discount. The guidance is to be applied using a modified retrospective approach, with early adoption permitted. |  | January 1, 2019 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC 842 "Leases" |  | This update changes the accounting for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding asset, adjusted for certain items, is also recorded. Expense recognition for lessees will remain similar to current accounting requirements for capital and operating leases. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period presented and early adoption is permitted. |  | January 1, 2019 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 326 "Financial Instruments - Credit Losses" |  | This update amends the guidance on the impairment of financial instruments. The update adds an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modifies the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures will also be required, including information used to develop the allowance for losses. The guidance is to be applied to most instruments in scope using a modified retrospective approach at the beginning of the earliest comparative period presented with early adoption permitted. For available-for-sale fixed maturity securities, the update is applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. |  | January 1, 2020 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC 350 "Intangibles - Goodwill and Other" |  | This update eliminates the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied prospectively, with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. |  | January 1, 2020 |  | The adoption of this update is not expected to have a material effect on our financial position or results of operations.
Accounting Updates Outstanding | Accounting Updates Outstanding:
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 220 "Income Statement - Reporting Comprehensive Income" |  | This update allows entities to make an accounting policy election to reclassify the stranded tax effects arising as a result of the recognition of the enactment of the tax bill, H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA) from accumulated other comprehensive income to retained earnings. Tax effects that are stranded in accumulated other comprehensive income for reasons other than the TCJA may not be reclassified. This update requires additional disclosures on whether an entity elects to reclassify the stranded tax effects and its policy for releasing tax effects from accumulated other comprehensive income. This guidance may be applied in the period of adoption or retrospectively to each period in which the effect of the change in federal income tax rate in the TCJA is recognized. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018; however, early adoption is permitted. |  | January 1, 2019 |  | We intended to early adopt this update effective January 1, 2018, but have chosen to now continue our evaluation of this potential adoption. If we elect to adopt this update, we will reclassify stranded tax effects resulting from the enactment of the TCJA from accumulated other comprehensive income to retained earnings and will apply the amendments as of January 1 in the year the election is made. In addition, we will be required to expand our disclosures.
ASC 310 "Receivables - Nonrefundable Fees and Other Costs" |  | This update shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. This update does not impact securities held at a discount. The guidance is to be applied using a modified retrospective approach, with early adoption permitted. |  | January 1, 2019 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC 842 "Leases" |  | This update changes the accounting for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding asset, adjusted for certain items, is also recorded. Expense recognition for lessees will remain similar to current accounting requirements for capital and operating leases. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period presented and early adoption is permitted. |  | January 1, 2019 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC |  | Description |  | Date of Adoption |  | Effect on Financial Statements
ASC 326 "Financial Instruments - Credit Losses" |  | This update amends the guidance on the impairment of financial instruments. The update adds an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modifies the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures will also be required, including information used to develop the allowance for losses. The guidance is to be applied to most instruments in scope using a modified retrospective approach at the beginning of the earliest comparative period presented with early adoption permitted. For available-for-sale fixed maturity securities, the update is applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. |  | January 1, 2020 |  | We have not yet determined the expected impact on our financial position or results of operations.
ASC 350 "Intangibles - Goodwill and Other" |  | This update eliminates the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied prospectively, with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. |  | January 1, 2020 |  | The adoption of this update is not expected to have a material effect on our financial position or results of operations.

X
- Definition The entire disclosure for a new accounting pronouncement that has been issued but not yet adopted. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
Name: | us-gaap_DescriptionOfNewAccountingPronouncementsNotYetAdopted
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration