Accounting Updates Adopted in 2018:



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 were 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 tables contained herein 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 was 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 was 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 were required prospectively. Early adoption was 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 also simplified hedge documentation requirements and expanded available hedging strategies.

Summary of Financial Statement Impacts of Accounting Updates Adopted in 2018:



	For the Year Ended December 31
	2017							2016
	Historical Accounting Method		As Adjusted		Effect of Change			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	$	12.8	$	27.5	$	14.7		$	32.9	$	38.4	$	5.5
Cash Flows from Investing Activities
Proceeds from Sales and Maturities of Other Investments	272.6		257.9		(14.7		)	336.8		331.3		(5.5		)



	For the Year Ended December 31
	2017							2016
	Historical Accounting Method		As Adjusted		Effect of Change			Historical Accounting Method		As Adjusted		Effect of Change
	(in millions of dollars)
Adjustments due to ASC 715
Consolidated Statements of Income
Compensation Expense	$	844.4	$	852.3	$	7.9		$	832.1	$	839.1	$	7.0
Other Expenses	862.9		855.0		(7.9		)	831.6		824.6		(7.0		)



	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
Investments
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 Adopted in 2017:

Accounting Updates Adopted in 2016:

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 was applied retrospectively.

January 1, 2018

The adoption of this update resulted in the reclassification of certain cash inflows between investing activities and operating activities within our consolidated statements of cash flows. The reclassification primarily related to cash distributions from equity method investees and the bifurcation of those distributions as either returns on investment or returns of investment which resulted in a reclassification of cash inflows from investing activities to operating activities. The remaining portion of the reclassification related to the receipt of proceeds from corporate-owned life insurance benefits which resulted in a reclassification of cash inflows from operating activities to investing activities. The adoption of this update had no effect on our financial position or results of operations. See the summary tables contained herein 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 was 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.