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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information
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 disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. The group disability line of business includes long-term and short-term disability, medical stop-loss, and fee-based service products. The supplemental and voluntary line of business includes 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.

The Unum International segment is comprised of our operations in both the United Kingdom and Poland. Our Unum UK products include insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. Our Unum Poland products include insurance for individual and group life with accident and health riders. Unum International's products are sold primarily through field sales personnel and independent brokers and consultants.

The Colonial Life segment includes insurance for accident, sickness, and disability products, which includes our 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 agent sales force and brokers.

The Closed Block segment consists of group and individual long-term care, individual disability, and other insurance products no longer actively marketed. We discontinued offering individual long-term care in 2009 and group long-term care in 2012. Individual disability in this segment generally consists of policies we sold prior to the mid-1990s and entirely discontinued selling in 2004. In December 2020, we entered into the first phase of a reinsurance agreement to reinsure the majority of our Closed Block individual disability products to a third party. In March 2021, we completed the second phase of the reinsurance transaction to reinsure a portion of the remaining Closed Block individual disability business that was not ceded in December 2020. See Note 12 for further discussion. 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 expenses not allocated to a line of business.

Impairment Loss on Internal-Use Software

During the third quarter of 2021, we recognized an impairment loss of $12.1 million for previously capitalized internal-use software that we no longer plan to utilize. We determined that this internal-use software would no longer be developed in order to focus our efforts on the development of software that better supports our long-term strategic goals. The impairment loss reduced the carrying value of the internal-use software to zero and has been recorded within other expenses in the consolidated statements of income and is included within our Corporate segment.

Costs Related to Organizational Design Update

During the third quarter of 2020, we realigned certain parts of our organizational structure by shifting resources to accelerate growth, fund priority investments, and simplify and improve our business practices. In connection with this update, we incurred charges of $23.3 million, which primarily consisted of employee severance and benefit costs as well as certain costs related to lease terminations and the disposal of certain fixed assets. These costs were recorded within either compensation expense or other expenses in the consolidated statements of income and were included within our Corporate segment. This update did not result in the exit or disposal of any of our lines of business.
Segment information is as follows:
Year Ended December 31
202120202019
(in millions of dollars)
Premium Income
Unum US
Group Disability
Group Long-term Disability$1,827.8 $1,828.5 $1,823.1 
Group Short-term Disability864.0 799.2 768.8 
Group Life and Accidental Death & Dismemberment
Group Life1,641.9 1,640.5 1,662.0 
Accidental Death & Dismemberment165.1 163.9 165.7 
Supplemental and Voluntary
Individual Disability459.8 456.0 440.7 
Voluntary Benefits846.7 875.2 910.2 
Dental and Vision272.7 255.6 246.1 
6,078.0 6,018.9 6,016.6 
Unum International
Unum UK
Group Long-term Disability401.9 364.9 353.4 
Group Life112.3 108.5 115.7 
Supplemental112.6 99.8 89.5 
Unum Poland90.2 79.6 71.9 
717.0 652.8 630.5 
Colonial Life
Accident, Sickness, and Disability953.3 975.1 973.4 
Life384.7 376.4 351.6 
Cancer and Critical Illness352.2 360.5 360.0 
1,690.2 1,712.0 1,685.0 
Closed Block
Long-term Care704.3 666.9 651.6 
Individual Disability284.0 319.6 374.3 
All Other7.5 7.9 7.6 
995.8 994.4 1,033.5 
Total Premium Income$9,481.0 $9,378.1 $9,365.6 
Unum USUnum InternationalColonial LifeClosed BlockCorporateTotal
(in millions of dollars)
Year Ended December 31, 2021
Premium Income$6,078.0 $717.0 $1,690.2 $995.8 $— $9,481.0 
Net Investment Income721.6 132.7 172.0 1,159.0 27.9 2,213.2 
Other Income170.0 0.6 1.0 65.1 6.2 242.9 
Adjusted Operating Revenue$6,969.6 $850.3 $1,863.2 $2,219.9 $34.1 $11,937.1 
Adjusted Operating Income (Loss)$464.9 $105.7 $329.2 $394.7 $(177.9)$1,116.6 
Interest and Debt Expense$— $— $— $— $185.0 $185.0 
Depreciation and Amortization$400.9 $21.0 $275.4 $5.1 $0.7 $703.1 
Year Ended December 31, 2020
Premium Income$6,018.9 $652.8 $1,712.0 $994.4 $— $9,378.1 
Net Investment Income720.3 104.6 155.7 1,370.3 9.8 2,360.7 
Other Income154.9 0.5 1.1 66.6 1.1 224.2 
Adjusted Operating Revenue$6,894.1 $757.9 $1,868.8 $2,431.3 $10.9 $11,963.0 
Adjusted Operating Income (Loss)$825.4 $76.6 $335.4 $241.4 $(200.8)$1,278.0 
Interest and Debt Expense$— $— $— $3.1 $185.1 $188.2 
Depreciation and Amortization$421.7 $20.1 $273.9 $5.9 $0.7 $722.3 
Year Ended December 31, 2019
Premium Income$6,016.6 $630.5 $1,685.0 $1,033.5 $— $9,365.6 
Net Investment Income739.4 122.5 148.0 1,404.9 20.5 2,435.3 
Other Income142.8 0.6 3.4 71.3 3.1 221.2 
Adjusted Operating Revenue$6,898.8 $753.6 $1,836.4 $2,509.7 $23.6 $12,022.1 
Adjusted Operating Income (Loss)$1,031.1 $107.9 $344.5 $137.7 $(188.6)$1,432.6 
Interest and Debt Expense$— $— $— $5.3 $172.1 $177.4 
Depreciation and Amortization$422.8 $18.7 $276.6 $7.7 $1.7 $727.5 
UnumColonial
Unum USInternationalLifeTotal
(in millions of dollars)
Deferred Acquisition Costs
Year Ended December 31, 2021
Beginning of Year$1,168.7 $32.0 $1,071.9 $2,272.6 
Capitalization242.7 12.8 252.6 508.1 
Amortization(319.0)(8.0)(259.1)(586.1)
Adjustment Related to Unrealized Investment Gains and Losses3.8 — 10.9 14.7 
Foreign Currency— (1.4)— (1.4)
End of Year$1,096.2 $35.4 $1,076.3 $2,207.9 
Year Ended December 31, 2020
Beginning of Year$1,223.0 $26.4 $1,074.6 $2,324.0 
Capitalization291.5 12.1 272.6 576.2 
Amortization(341.0)(7.4)(257.7)(606.1)
Adjustment Related to Unrealized Investment Gains and Losses(4.8)— (17.6)(22.4)
Foreign Currency— 0.9 — 0.9 
End of Year$1,168.7 $32.0 $1,071.9 $2,272.6 
Year Ended December 31, 2019
Beginning of Year$1,239.4 $20.0 $1,050.0 $2,309.4 
Capitalization334.5 12.8 311.3 658.6 
Amortization(344.0)(7.1)(258.8)(609.9)
Adjustment Related to Unrealized Investment Gains and Losses(6.9)— (27.9)(34.8)
Foreign Currency— 0.7 — 0.7 
End of Year$1,223.0 $26.4 $1,074.6 $2,324.0 

December 31
20212020
(in millions of dollars)
Assets
Unum US$18,696.3 $19,034.2 
Unum International4,086.5 4,206.2 
Colonial Life4,895.9 4,864.3 
Closed Block38,287.9 38,187.2 
Corporate4,149.0 4,333.9 
Total Assets$70,115.6 $70,625.8 

Revenue is primarily derived from sources in the United States, the United Kingdom, and Poland. 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, 2021 and 2020 goodwill was $352.2 million and $353.0 million, respectively, with $280.0 million attributable to Unum US in each year, $44.5 million and $45.3 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 investment gains and losses and amortization of the cost of reinsurance as well as 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. 

Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. 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 investment gains or losses. Although we may experience 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.

As previously discussed in Note 12, we have exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that was recognized as a result of the exit of the business related to the DLR cohort of policies. We believe that the exclusion of the amortization of the cost of reinsurance provides a better view of our results from our ongoing businesses.

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 above and Notes 3, 6, 8, 12, and 15 for further discussion regarding the items specified in the reconciliation below.
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
202120202019
(in millions of dollars)
Total Revenue$12,013.8 $13,162.1 $11,998.9 
Excluding:
Net Investment Gain (Loss)76.7 1,199.1 (23.2)
Adjusted Operating Revenue$11,937.1 $11,963.0 $12,022.1 
Income Before Income Tax$1,063.0 $964.0 $1,382.1 
Excluding:
Net Investment Gains and Losses
Net Realized Investment Gain Related to Reinsurance Transaction67.6 1,302.3 — 
Net Investment Gain (Loss), Other
9.1 (103.2)(23.2)
Total Net Investment Gain (Loss)76.7 1,199.1 (23.2)
Items Related to Closed Block Individual Disability Reinsurance Transaction
Change in Benefit Reserves and Transaction Costs(139.3)(1,305.5)— 
Amortization of the Cost of Reinsurance(79.1)(2.6)— 
Total Items Related to Closed Block Individual Disability Reinsurance Transaction(218.4)(1,308.1)— 
Net Reserve Change Related to Reserve Assumption Updates181.4 (169.0)— 
Impairment Loss on Internal-Use Software(12.1)— — 
Cost Related to Early Retirement of Debt(67.3)— (27.3)
Impairment Loss on ROU Asset(13.9)(12.7)— 
Costs Related to Organizational Design Update— (23.3)— 
Adjusted Operating Income$1,116.6 $1,278.0 $1,432.6