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Condensed Finacial Information of Registrant
12 Months Ended
Dec. 31, 2013
Schedule II - Condensed Financial Info [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Unum Group (Parent Company)

BALANCE SHEETS

 
December 31
 
2013
 
2012
 
(in millions of dollars)
 
 
 
 
Assets
 
 
 
Fixed Maturity Securities - at fair value (amortized cost: $143.9; $217.7)
$
145.3

 
$
224.6

Other Long-term Investments
57.2

 
73.0

Short-term Investments
164.0

 
433.5

Investment in Subsidiaries
10,082.8

 
10,079.1

Deferred Income Tax
68.1

 
234.1

Other Assets
558.8

 
489.1

Total Assets
$
11,076.2

 
$
11,533.4

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
Short-term Debt
$
0.3

 
$
6.6

Long-term Debt
1,875.2

 
1,896.2

Pension and Postretirement Benefits
295.3

 
801.6

Other Liabilities
246.3

 
216.4

Total Liabilities
2,417.1

 
2,920.8

 
 
 
 
Stockholders' Equity
 
 
 
Common Stock
36.1

 
36.0

Additional Paid-in Capital
2,634.1

 
2,607.7

Accumulated Other Comprehensive Income
255.0

 
628.0

Retained Earnings
8,083.2

 
7,371.6

Treasury Stock
(2,349.3
)
 
(2,030.7
)
Total Stockholders' Equity
8,659.1

 
8,612.6

 
 
 
 
Total Liabilities and Stockholders' Equity
$
11,076.2

 
$
11,533.4


















See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

STATEMENTS OF INCOME

 
Year Ended December 31
 
2013
 
2012
 
2011
 
(in millions of dollars)
 
 
 
 
Cash Dividends from Subsidiaries
$
636.6

 
$
670.8

 
$
800.0

Other Income
56.9

 
55.0

 
65.0

Total Revenue
693.5

 
725.8

 
865.0

 
 
 
 
 
 
Interest and Debt Expense
120.9

 
114.2

 
112.1

Other Expenses
48.9

 
65.5

 
57.7

Total Expenses
169.8

 
179.7

 
169.8

 
 
 
 
 
 
Income Before Income Tax of Parent Company
523.7

 
546.1

 
695.2

Income Tax Benefit
(14.7
)
 
(25.7
)
 
(13.9
)
 
 
 
 
 
 
Income of Parent Company
538.4

 
571.8

 
709.1

Equity in Undistributed Earnings (Loss) of Subsidiaries
319.7

 
322.6

 
(424.9
)
 
 
 
 
 
 
Net Income
858.1

 
894.4

 
284.2

 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(373.0
)
 
166.2

 
110.4

 
 
 
 
 
 
Comprehensive Income
$
485.1

 
$
1,060.6

 
$
394.6




























See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

STATEMENTS OF CASH FLOWS

 
Year Ended December 31
 
2013
 
2012
 
2011
 
(in millions of dollars)
 
 
 
 
 
 
Cash Provided by Operating Activities
$
612.5

 
$
677.3

 
$
827.8

 
 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
 
Proceeds from Sales of Fixed Maturity Securities

 

 
133.9

Proceeds from Maturities of Fixed Maturity Securities
38.5

 
47.7

 
44.5

Proceeds from Sales and Maturities of Other Investments
9.4

 
1.0

 

Purchase of Fixed Maturity Securities
(139.8
)
 
(99.1
)
 

Purchase of Other Investments

 
(13.7
)
 
(3.0
)
Net Sales of Short-term Investments
269.5

 
40.4

 
192.8

Cash Distributions to Subsidiaries
(225.1
)
 
(175.2
)
 
(166.1
)
Acquisition of Property and Equipment
(78.8
)
 
(80.4
)
 
(81.1
)
Other, Net
(0.9
)
 
0.1

 
0.2

Cash Provided (Used) by Investing Activities
(127.2
)
 
(279.2
)
 
121.2

 
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
 
Net Short-term Debt Borrowings (Repayments)
(6.3
)
 
4.1

 
(222.6
)
Issuance of Long-term Debt

 
246.4

 

Issuance of Common Stock
11.4

 
4.9

 
14.8

Repurchase of Common Stock
(317.2
)
 
(496.7
)
 
(619.9
)
Dividends Paid to Stockholders
(146.5
)
 
(133.8
)
 
(121.0
)
Other, Net
(0.3
)
 
1.6

 

Cash Used by Financing Activities
(458.9
)
 
(373.5
)
 
(948.7
)
 
 
 
 
 
 
Increase in Cash
$
26.4

 
$
24.6

 
$
0.3






















See notes to condensed financial information.
SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

NOTES TO CONDENSED FINANCIAL INFORMATION

Note 1 - Basis of Presentation

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Unum Group and subsidiaries.

Note 2 - Debt

Long-term and short-term debt consists of the following:
 
December 31
 
2013
 
2012
 
(in millions of dollars)
Long-term Debt
 
 
 
Notes @ 5.75% due 2042, callable at or above par
$
248.6

 
$
248.6

Notes @ 7.375% due 2032, callable at or above par
39.5

 
39.5

Notes @ 6.75% due 2028, callable at or above par
165.8

 
165.8

Notes @ 7.25% due 2028, callable at or above par
200.0

 
200.0

Notes @ 5.625% due 2020, callable at or above par
399.7

 
399.6

Notes @ 7.125% due 2016, callable at or above par
350.0

 
350.0

Notes @ 7.0% due 2018, non-callable
200.0

 
200.0

Medium-term Notes @ 7.0% to 7.2% due 2023 to 2028, non-callable
50.8

 
50.8

Junior Subordinated Debt Securities @ 7.405% due 2038
226.5

 
226.5

Fair Value Hedges Adjustment
(5.7
)
 
15.4

   Total
1,875.2

 
1,896.2

Short-term Debt
 
 
 
Securities Lending Agreements
0.3

 
6.6

Total
$
1,875.5

 
$
1,902.8



The junior subordinated debt securities due 2038 are callable under limited, specified circumstances. The remaining callable debt may be redeemed, in whole or in part, at any time. The aggregate contractual principal maturities are $350.0 million in 2016, $200.0 million in 2018, and $1,332.6 million in 2020 and thereafter.

Unsecured Notes

In August 2012, we issued $250.0 million of unsecured senior notes in a public offering.

Fair Value Hedges

As of December 31, 2013 and 2012, we had $600.0 million notional amount interest rate swaps which effectively convert certain of our unsecured senior notes into floating rate debt. Under these agreements, we receive fixed rates of interest and pay variable rates of interest, based off of the three-month London Interbank Offered Rate (LIBOR).

Junior Subordinated Debt Securities

In 1998, Provident Financing Trust I (the trust), a 100 percent-owned finance subsidiary of Unum Group, issued $300.0 million of 7.405% capital securities in a public offering. These capital securities, which mature in 2038, are fully and unconditionally guaranteed by Unum Group, have a liquidation value of $1,000 per capital security, and have a mandatory redemption feature under certain circumstances. Unum Group issued 7.405% junior subordinated deferrable interest debentures to the trust in connection with the capital securities offering. The debentures mature in 2038. The sole assets of the trust are the junior subordinated debt securities.



SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

Unum Group (Parent Company)

NOTES TO CONDENSED FINANCIAL INFORMATION - CONTINUED

Short-term Debt

Short-term debt consists of debt due within the next twelve months, including that portion of debt otherwise classified as long-term, and securities lending agreements collateralized by cash. We account for all of our securities lending agreements as collateralized financings, and the carrying amount of the related short-term debt represents our liability to return cash collateral to the counterparty.

In 2011, the remaining $225.1 million of our 7.625% senior notes due March 2011 matured.

Interest and Debt Expense

Interest paid on long-term and short-term debt and related securities during 2013, 2012, and 2011 was $116.5 million, $109.0 million, and $115.6 million, respectively.

Credit Facility

In August 2013, we entered into a five-year, $400.0 million unsecured revolving credit facility. Under the terms of the agreement, we may request that the credit facility be increased up to $600.0 million. Borrowings under the credit facility are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The credit facility provides for interest rates based on either the prime rate or LIBOR. At December 31, 2013, no amount was outstanding on the facility.

Note 3 - Guarantees

In 2005, UnumProvident Finance Company plc, a wholly-owned subsidiary of Unum Group, issued $400.0 million of 6.85% senior debentures due 2015. As of December 31, 2013, $296.9 million of these debentures, which we fully and unconditionally guarantee, were outstanding.