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Condensed Finacial Information of Registrant
12 Months Ended
Dec. 31, 2014
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
 
2014
 
2013
 
(in millions of dollars)
 
 
 
 
Assets
 
 
 
Fixed Maturity Securities - at fair value (amortized cost: $161.4; $143.9)
$
162.2

 
$
145.3

Other Long-term Investments
51.9

 
57.2

Short-term Investments
326.2

 
164.0

Investment in Subsidiaries
10,362.7

 
10,082.8

Deferred Income Tax
160.1

 
68.1

Other Assets
568.3

 
558.8

Total Assets
$
11,631.4

 
$
11,076.2

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
Long-term Debt
$
2,230.3

 
$
1,875.2

Pension and Postretirement Benefits
581.5

 
295.3

Other Liabilities
267.2

 
246.6

Total Liabilities
3,079.0

 
2,417.1

 
 
 
 
Stockholders' Equity
 
 
 
Common Stock
30.2

 
36.1

Additional Paid-in Capital
2,221.2

 
2,634.1

Accumulated Other Comprehensive Income
166.4

 
255.0

Retained Earnings
7,332.8

 
8,083.2

Treasury Stock
(1,198.2
)
 
(2,349.3
)
Total Stockholders' Equity
8,552.4

 
8,659.1

 
 
 
 
Total Liabilities and Stockholders' Equity
$
11,631.4

 
$
11,076.2





















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
 
2014
 
2013
 
2012
 
(in millions of dollars)
 
 
 
 
Cash Dividends from Subsidiaries
$
645.2

 
$
636.6

 
$
670.8

Other Income
116.3

 
56.9

 
55.0

Total Revenue
761.5

 
693.5

 
725.8

 
 
 
 
 
 
Interest and Debt Expense
132.4

 
120.9

 
114.2

Other Expenses
66.0

 
48.9

 
65.5

Total Expenses
198.4

 
169.8

 
179.7

 
 
 
 
 
 
Income of Parent Company Before Income Tax
563.1

 
523.7

 
546.1

Income Tax Benefit
(24.5
)
 
(14.7
)
 
(25.7
)
 
 
 
 
 
 
Income of Parent Company
587.6

 
538.4

 
571.8

Equity in Undistributed Earnings (Loss) of Subsidiaries
(174.2
)
 
319.7

 
322.6

 
 
 
 
 
 
Net Income
413.4

 
858.1

 
894.4

 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(88.6
)
 
(373.0
)
 
166.2

 
 
 
 
 
 
Comprehensive Income
$
324.8

 
$
485.1

 
$
1,060.6



























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
 
2014
 
2013
 
2012
 
(in millions of dollars)
 
 
 
 
 
 
Cash Provided by Operating Activities
$
683.0

 
$
612.5

 
$
677.3

 
 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
 
Proceeds from Sales of Fixed Maturity Securities
25.0

 

 

Proceeds from Maturities of Fixed Maturity Securities
76.1

 
38.5

 
47.7

Proceeds from Sales and Maturities of Other Investments
31.9

 
9.4

 
1.0

Purchase of Fixed Maturity Securities
(118.9
)
 
(139.8
)
 
(99.1
)
Purchase of Other Investments
(19.0
)
 
(1.0
)
 
(13.7
)
Net Sales (Purchases) of Short-term Investments
(162.1
)
 
269.5

 
40.4

Cash Distributions to Subsidiaries
(316.1
)
 
(225.1
)
 
(175.2
)
Acquisition of Property and Equipment
(102.5
)
 
(78.8
)
 
(80.4
)
Other, Net
(0.2
)
 
(6.2
)
 
4.2

Cash Used by Investing Activities
(585.8
)
 
(133.5
)
 
(275.1
)
 
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
 
Issuance of Long-term Debt
347.2

 

 
246.4

Issuance of Common Stock
12.3

 
11.4

 
4.9

Repurchase of Common Stock
(306.0
)
 
(317.2
)
 
(496.7
)
Dividends Paid to Stockholders
(159.4
)
 
(146.5
)
 
(133.8
)
Other, Net
1.9

 
(0.3
)
 
1.6

Cash Used by Financing Activities
(104.0
)
 
(452.6
)
 
(377.6
)
 
 
 
 
 
 
Increase (Decrease) in Cash
$
(6.8
)
 
$
26.4

 
$
24.6























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

Debt consists of the following:
 
 
 
 
 
December 31
 
 
 
 
 
2014
 
2013
 
Interest Rates
 
Maturities
 
(in millions of dollars)
Long-term Debt
 
 
 
 
 
 
 
   Senior Notes issued 1998
7.000%
 
2018
 
$
200.0

 
$
200.0

   Senior Notes issued 1998
6.750 - 7.250%
 
2028
 
365.8

 
365.8

   Senior Notes issued 2002
7.375%
 
2032
 
39.5

 
39.5

   Senior Notes issued 2009
7.125%
 
2016
 
350.0

 
350.0

   Senior Notes issued 2010
5.625%
 
2020
 
399.7

 
399.7

   Senior Notes issued 2012
5.750%
 
2042
 
248.7

 
248.6

   Senior Notes issued 2014
4.000%
 
2024
 
349.5

 

   Medium-term Notes issued 1990 - 1996
7.000 - 7.190%
 
2023 - 2028
 
50.8

 
50.8

   Junior Subordinated Debt Securities issued 1998
7.405%
 
2038
 
226.5

 
226.5

   Fair Value Hedges Adjustment
 
 
 
 
(0.2
)
 
(5.7
)
Total Long-term Debt
 
 
 
 
$
2,230.3

 
$
1,875.2



The prior year amount for securities lending has been reclassified from short-term debt to other liabilities in our condensed balance sheets to conform to the current year presentation and is therefore no longer included in the chart above. Cash flows resulting from the change in the securities lending liability in prior years have also been reclassified from financing to investing in our statements of cash flows to conform to the current year presentation.

The senior notes due 2018 and the medium-term notes are non-callable. The junior subordinated debt securities are callable under limited, specified circumstances. The remaining debt is callable and 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 $1,682.6 million in 2020 and thereafter.

Fair Value Hedges

As of December 31, 2014 and 2013, 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 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

Interest Paid

Interest paid on long-term debt and related securities during 2014, 2013, and 2012 was $123.6 million, $116.5 million, and $109.0 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 borrowing at an interest rate based either on the prime rate or LIBOR. In addition, the credit facility provides for the issuance of letters of credit subject to certain terms and limitations. At December 31, 2014, letters of credit totaling $2.1 million had been issued from the credit facility. No letters of credit had been issued from the credit facility at December 31, 2013. At December 31, 2014 and 2013, there were no borrowed amounts outstanding from the credit 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, 2014, $151.9 million of these debentures, which we fully and unconditionally guarantee, were outstanding.