We have three principal operating business segments: Unum US, Unum International, and Colonial Life. Our other segments are Closed Block and Corporate.

The Unum US segment is comprised of group long-term disability, which includes our new medical stop-loss product, and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. The supplemental and voluntary lines of business are comprised of individual disability, voluntary benefits, and dental and vision products. These products are marketed through our field sales personnel who work in conjunction with independent brokers and consultants.

In connection with our acquisition of Pramerica Zycie TUiR S.A., (which we have subsequently renamed Unum Zycie TUiR S.A. and refer to as Unum Poland) in the fourth quarter of 2018, we changed the name of our Unum UK segment to Unum International. The Unum International segment is now comprised of our Unum UK line of business and the newly acquired Unum Poland line of business. See "Acquisitions of Business" below for further information. Unum UK's business includes insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. Unum UK's products are sold primarily in the United Kingdom through field sales personnel and independent brokers and consultants. Unum Poland's business primarily includes insurance for individual and group life with accident and health riders. Unum Poland's products are sold only in Poland, primarily through a combination of independent agents and field sales personnel. Unum Poland 's results are included within the supplemental product of the Unum International segment in U.S. dollars.

The Colonial Life segment includes insurance for accident, sickness, and disability products, which includes our expanded dental and vision products, life products, and cancer and critical illness products marketed to employees, on both a group and an individual basis, at the workplace through an independent contractor agency sales force and brokers.

The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products no longer actively marketed. Individual disability in this segment generally consists of policies we sold prior to the mid-1990s and entirely discontinued selling in 2004, other than update features contractually allowable on existing policies. We discontinued offering individual long-term care in 2009 and group long-term care in 2012. Other insurance products include group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines.

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.

Acquisitions of Business

2018 Acquisitions

On November 1, 2018, we acquired 100 percent of the shares and voting interests in Jaimini Health, Inc. (Jaimini Health), a dental health maintenance organization. The acquisition of Jaimini Health will broaden our employee benefit dental offerings in the U.S., particularly in the state of California, and is reported in our Unum US segment.

On October 1, 2018, we acquired 100 percent of the shares and voting interests in Unum Poland, a financial protection benefits provider in Poland. This acquisition will expand our European presence, which we believe to be an attractive market for financial protection benefits.

On January 1, 2018, we acquired 100 percent of the shares and voting interests in Leavelogic, Inc (Leavelogic), a leave management technology provider. The acquisition of Leavelogic will enhance our current leave management offerings by providing tools for employers and employees to better manage the family leave process and is reported in our Unum US segment.

Aggregate revenues for all three acquired entities totaled approximately $61 million in 2017. Aggregate assets were valued at approximately $344 million as of the respective acquisition dates and were primarily comprised of bonds, short-term investments, and intangible assets attributable to the value of business acquired, the value of distribution networks, and licenses. Aggregate liabilities were valued at approximately $206 million as of the respective acquisition dates and were primarily comprised of outstanding claim liabilities, reserves for future claims, and income tax liabilities. The aggregate purchase price for all three transactions was approximately $151 million and exceeded the fair value of the identifiable net assets by approximately $13 million, which was identified as goodwill, primarily attributable to the value of adding individual and group financial protection products in Poland to our current employee benefit offerings and the value of enhancing our technology capabilities around our leave management offerings. The goodwill is not deductible for income tax purposes except upon disposition of the acquired entities. These acquisitions, the results of which are included in our consolidated financial statements for the periods subsequent to the respective dates of acquisition, did not have a material impact on revenue or results of operations for 2018.

2016 Acquisition

In 2016, we acquired 100 percent of the shares and voting interests in H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (Starmount), for a total cash purchase price of $140.3 million plus contingent cash consideration of $10.0 million that was paid in two increments of $5.0 million each, at 18 and 24 months from the date of acquisition upon satisfaction of certain conditions. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. The acquisition of Starmount broadens our employee benefit offerings in the U.S. Starmount's dental and vision products and new dental and vision products marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products were introduced in 2018 and are reported in our Colonial Life segment within our accident, sickness, and disability product line.

Total assets were valued at $93.1 million as of the acquisition date and were primarily comprised of bonds, cash, accounts receivable, and intangible assets attributable to the value of business acquired and the value of existing state licenses. Total liabilities were valued at $55.7 million as of the acquisition date and were primarily comprised of outstanding claim liabilities and reserves for future claims. The total purchase price exceeded the fair value of the identifiable net assets by $111.2 million and has been identified as goodwill, primarily attributable to the value of adding dental and vision to our current employee benefit offerings. Goodwill was allocated to the reporting units expected to benefit from the acquisition. Approximately 75 percent was allocated to our Unum US supplemental and voluntary product lines and approximately 25 percent to Colonial Life. The goodwill is not deductible for income tax purposes except upon disposition of the acquired entity.

Segment information is as follows:



	Year Ended December 31
	2018		2017		2016
	(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability	$	1,766.2	$	1,749.6	$	1,726.6
Group Short-term Disability	706.3		639.8		626.1
Group Life and Accidental Death & Dismemberment
Group Life	1,583.7		1,467.5		1,410.0
Accidental Death & Dismemberment	156.3		147.5		140.3
Supplemental and Voluntary
Individual Disability	425.4		420.2		480.3
Voluntary Benefits	895.7		849.4		796.5
Dental and Vision	202.8		169.5		61.1
	5,736.4		5,443.5		5,240.9
Unum International
Group Long-term Disability	358.9		340.3		355.2
Group Life	110.8		103.1		105.7
Supplemental	99.1		69.6		68.4
	568.8		513.0		529.3
Colonial Life
Accident, Sickness, and Disability	929.3		884.2		830.0
Life	328.4		300.4		273.8
Cancer and Critical Illness	346.1		326.8		313.3
	1,603.8		1,511.4		1,417.1
Closed Block
Individual Disability	420.8		471.8		521.9
Long-term Care	648.3		648.7		643.9
All Other	8.0		8.7		4.6
	1,077.1		1,129.2		1,170.4

Total Premium Income	$	8,986.1	$	8,597.1	$	8,357.7



	Unum US		Unum International		Colonial Life		Closed Block		Corporate			Total
	(in millions of dollars)
Year Ended December 31, 2018

Premium Income	$	5,736.4	$	568.8	$	1,603.8	$	1,077.1	$	—		$	8,986.1
Net Investment Income	778.7		117.2		151.2		1,377.1		29.5			2,453.7
Other Income	118.5		0.4		1.2		75.4		2.7			198.2
Adjusted Operating Revenue	$	6,633.6	$	686.4	$	1,756.2	$	2,529.6	$	32.2		$	11,638.0

Adjusted Operating Income (Loss)	$	1,014.6	$	113.9	$	335.2	$	125.5	$	(171.1	)	$	1,418.1
Interest and Debt Expense	$	—	$	—	$	—	$	6.9	$	160.4		$	167.3
Depreciation and Amortization	$	389.6	$	17.6	$	257.3	$	8.3	$	1.0		$	673.8

Year Ended December 31, 2017

Premium Income	$	5,443.5	$	513.0	$	1,511.4	$	1,129.2	$	—		$	8,597.1
Net Investment Income	811.2		120.2		144.9		1,354.0		21.4			2,451.7
Other Income	113.2		0.7		1.1		79.8		2.9			197.7
Adjusted Operating Revenue	$	6,367.9	$	633.9	$	1,657.4	$	2,563.0	$	24.3		$	11,246.5

Adjusted Operating Income (Loss)	$	1,009.5	$	111.7	$	325.0	$	123.9	$	(146.8	)	$	1,423.3
Interest and Debt Expense	$	—	$	—	$	—	$	6.7	$	153.2		$	159.9
Depreciation and Amortization	$	371.3	$	17.3	$	239.9	$	6.7	$	0.9		$	636.1

Year Ended December 31, 2016

Premium Income	$	5,240.9	$	529.3	$	1,417.1	$	1,170.4	$	—		$	8,357.7
Net Investment Income	828.7		118.1		141.5		1,352.2		18.5			2,459.0
Other Income	113.3		0.2		1.2		86.0		4.9			205.6
Adjusted Operating Revenue	$	6,182.9	$	647.6	$	1,559.8	$	2,608.6	$	23.4		$	11,022.3

Adjusted Operating Income (Loss)	$	914.2	$	128.6	$	314.2	$	129.5	$	(163.0	)	$	1,323.5
Interest and Debt Expense	$	—	$	—	$	—	$	6.9	$	159.1		$	166.0
Depreciation and Amortization	$	353.0	$	16.4	$	222.9	$	6.9	$	1.0		$	600.2



				Unum			Colonial
	Unum US			International			Life			Total
	(in millions of dollars)
Deferred Acquisition Costs

Year Ended December 31, 2018
Beginning of Year	$	1,205.4		$	21.3		$	957.9		$	2,184.6
Capitalization	344.0			8.1			315.9			668.0
Amortization	(315.1		)	(8.2		)	(242.2		)	(565.5		)
Adjustment Related to Unrealized Investment Gains and Losses	5.1			—			18.4			23.5
Foreign Currency	—			(1.2		)	—			(1.2		)
End of Year	$	1,239.4		$	20.0		$	1,050.0		$	2,309.4

Year Ended December 31, 2017
Beginning of Year	$	1,176.5		$	21.4		$	896.3		$	2,094.2
Capitalization	325.5			7.0			295.5			628.0
Amortization	(293.6		)	(9.1		)	(224.4		)	(527.1		)
Adjustment Related to Unrealized Investment Gains and Losses	(3.0		)	—			(9.5		)	(12.5		)
Foreign Currency	—			2.0			—			2.0
End of Year	$	1,205.4		$	21.3		$	957.9		$	2,184.6

Year Ended December 31, 2016
Beginning of Year	$	1,136.4		$	27.1		$	845.0		$	2,008.5
Capitalization	314.1			8.2			270.1			592.4
Amortization	(275.2		)	(9.7		)	(208.1		)	(493.0		)
Adjustment Related to Unrealized Investment Gains and Losses	1.2			—			(10.7		)	(9.5		)
Foreign Currency	—			(4.2		)	—			(4.2		)
End of Year	$	1,176.5		$	21.4		$	896.3		$	2,094.2



	December 31
	2018		2017
	(in millions of dollars)
Assets
Unum US	$	17,510.9	$	18,109.1
Unum International	3,426.8		3,428.1
Colonial Life	4,237.9		4,184.1
Closed Block	34,527.6		35,051.2
Corporate	2,172.4		3,240.6
Total Assets	$	61,875.6	$	64,013.1

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 International segment.

We report goodwill in our Unum US, Unum International, and Colonial Life segments, which are the segments expected to benefit from the originating business combinations. At December 31, 2018 and 2017 goodwill was $350.3 million and $338.6 million, respectively, with $280.0 million and $271.1 million, respectively, attributable to Unum US, $42.6 million and $39.8 million, respectively, attributable to Unum International, and $27.7 million attributable to Colonial Life in each year.

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.

We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income.

Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.

We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability.

See "Executive Summary" contained herein in Item 7 and Notes 6, 7, and 14 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 for further discussion regarding the impacts of the long-term care reserve increase, the TCJA, the unclaimed death benefit reserve increase, and the loss from a guaranty fund assessment, respectively.

A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:



	Year Ended December 31
	2018			2017			2016
	(in millions of dollars)
Total Revenue	$	11,598.5		$	11,286.8		$	11,046.5
Excluding:
Net Realized Investment Gain (Loss)	(39.5		)	40.3			24.2
Adjusted Operating Revenue	$	11,638.0		$	11,246.5		$	11,022.3

Income Before Income Tax	$	627.8		$	1,404.0		$	1,347.7
Excluding:
Net Realized Investment Gain (Loss)	(39.5		)	40.3			24.2
Loss from Guaranty Fund Assessment	—			(20.6		)	—
Unclaimed Death Benefit Reserve Increase	—			(39.0		)	—
Long-term Care Reserve Increase	(750.8		)	—			—
Adjusted Operating Income	$	1,418.1		$	1,423.3		$	1,323.5