Other

3 Months Ended

Mar. 31, 2016

Debt and Other Disclosures [Abstract]

Definitive Purchase Agreement

Definitive Purchase Agreement

We have entered into a definitive agreement to acquire H&J Capital, LLC, parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount), for a purchase price of $127 million plus net assets received. The acquisition of Starmount, a leading independent provider of dental and vision insurance in the U.S. workplace, will broaden our employee benefit offerings in both Unum US and Colonial Life. The transaction is expected to close by the end of the third quarter of 2016, subject to customary approvals and closing conditions.

Debt Disclosure

Debt

At March 31, 2016, short-term debt consisted entirely of a senior secured note due in the third quarter of 2016. Also included in the carrying amount of short-term debt were deferred debt costs of $0.3 million and a $1.7 million fair value hedge liability on the notes, with a corresponding fair value hedge asset included in other long-term investments.

In March 2016, we amended the terms of our five-year $400.0 million credit facility, which was previously set to expire in 2018, to extend through March 2021. At March 31, 2016, letters of credit totaling $2.1 millionhad been issued from the credit facility, but there werenoborrowed amounts outstanding.

During the three months ended March 31, 2016, we made principal payments of $13.2 million on our senior secured non-recourse notes issued by Northwind Holdings, LLC.

Income Tax Disclosure

Income Tax

In the first quarter of 2015, we reached agreement with the Internal Revenue Service on all outstanding issues related to the examinations for 2009 and 2010 tax years and refund claims filed for tax credits related to tax years 2003 through 2012.  As a result of this agreement, we reduced our reserve for uncertain tax positions in our consolidated balance sheet by $19.3 million. We also recognized in our consolidated statements of income a reduction in federal income taxes of $5.8 million.