SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)

Condensed Statements of Earnings



	Years ended December 31,
(In millions)	2012				2011				2010
Revenues:
Dividends from subsidiaries⁽¹⁾		$	0			$	282			$	370
Management and service fees from subsidiaries⁽¹⁾		249				230				206
Net investment income		20				10				11
Interest from subsidiaries⁽¹⁾		7				8				8
Realized investment gains (losses)		1				(1		)		0
Change in fair value of the cross-currency interest rate swaps		154				0				0
Other income (loss)		(7		)		1				1
Total revenues		424				530				596
Operating expenses:
Interest expense		184				168				140
Other operating expenses		72				69				66
Total operating expenses		256				237				206
Earnings before income taxes and equity in undistributed earnings of subsidiaries		168				293				390
Income tax expense (benefit):
Current		1				0				0
Deferred		50				(2		)		(3		)
Total income taxes		51				(2		)		(3		)
Earnings before equity in undistributed earnings of subsidiaries		117				295				393
Equity in undistributed earnings of subsidiaries⁽¹⁾		2,749				1,642				1,935
Net earnings		$	2,866			$	1,937			$	2,328

⁽¹⁾Eliminated in consolidation

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to Condensed Financial Statements.

See the accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)

Condensed Statements of Comprehensive Income (Loss)



	Years ended December 31,
(In millions)	2012				2011				2010
Net earnings		$	2,866			$	1,937			$	2,328
Other comprehensive income (loss) before income taxes:
Foreign currency translation adjustments:
Unrealized foreign currency translation gains (losses) during period - parent only		95				(54		)		(127		)
Equity in unrealized foreign currency translation gains (losses) of subsidiaries during period		(382		)		36				217
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period - parent only		15				11				7
Equity in unrealized holding gains (losses) on investment securities held by subsidiaries during period		1,645				555				363
Equity in reclassification adjustment for realized (gains) losses of subsidiaries included in net earnings		497				1,154				421
Unrealized gains (losses) on derivatives during period		(22		)		(33		)		51
Pension liability adjustment during period		(20		)		(65		)		(32		)
Total other comprehensive income (loss) before income taxes		1,828				1,604				900
Income tax expense (benefit) related to items of other comprehensive income (loss)		1,078				392				(32		)
Other comprehensive income (loss), net of income taxes		750				1,212				932
Total comprehensive income (loss)		$	3,616			$	3,149			$	3,260

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy

acquisition costs.

See the accompanying Notes to Condensed Financial Statements.

See the accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)

Condensed Balance Sheets



	December 31,
(In millions, except for share and per-share amounts)	2012				2011
Assets:
Investments and cash:
Fixed maturity securities available for sale, at fair value (amortized cost $131 in 2012 and $120 in 2011)		$	156			$	138
Investments in subsidiaries⁽¹⁾		19,001				15,531
Other investments		14				15
Cash and cash equivalents		830				385
Total investments and cash		20,001				16,069
Due from subsidiaries⁽¹⁾		156				134
Other assets		257				79
Total assets		$	20,414			$	16,282

Liabilities and shareholders' equity:
Liabilities:
Notes payable		$	4,367			$	3,345
Employee benefit plans		255				175
Income taxes		(232		)		(311		)
Other liabilities		46				127
Total liabilities		4,436				3,336
Shareholders' equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2012 and 2011; issued 665,239 shares in 2012 and 663,639 shares in 2011		67				66
Additional paid-in capital		1,505				1,408
Retained earnings		17,387				15,148
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains		333				984
Unrealized gains (losses) on investment securities		2,570				1,143
Unrealized gains (losses) on derivatives		(5		)		9
Pension liability adjustment		(183		)		(171		)
Treasury stock, at average cost		(5,696		)		(5,641		)
Total shareholders' equity		15,978				12,946
Total liabilities and shareholders' equity		$	20,414			$	16,282

⁽¹⁾Eliminated in consolidation

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy

acquisition costs.

See the accompanying Notes to Condensed Financial Statements.

See the accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)

Condensed Statements of Cash Flows



	Years ended December 31,
(In millions)	2012				2011				2010
Cash flows from operating activities:
Net earnings		$	2,866			$	1,937			$	2,328
Adjustments to reconcile net earnings to net cash provided from operating activities:
Equity in undistributed earnings of subsidiaries⁽¹⁾		(2,749		)		(1,642		)		(1,935		)
Change in income tax liabilities		111				(52		)		(77		)
Other, net		(242		)		145				153
Net cash provided (used) by operating activities		(14		)		388				469
Cash flows from investing activities:
Fixed maturity securities sold		13				4				12
Fixed maturity securities purchased		(26		)		(10		)		(8		)
Other investments sold (purchased)		(3		)		0				0
Purchase of subsidiary		0				0				0
Additional capitalization of subsidiaries⁽¹⁾		0				(40		)		0
Other, net		0				0				0
Net cash provided (used) by investing activities		(16		)		(46		)		4
Cash flows from financing activities:
Purchases of treasury stock		(118		)		(308		)		(121		)
Proceeds from borrowings		1,506				620				748
Principal payments under debt obligations		(380		)		(459		)		(447		)
Dividends paid to shareholders		(603		)		(552		)		(535		)
Treasury stock reissued		70				26				45
Proceeds from exercise of stock options		21				14				27
Net change in amount due to/from subsidiaries⁽¹⁾		(21		)		9				5
Net cash provided (used) by financing activities		475				(650		)		(278		)
Net change in cash and cash equivalents		445				(308		)		195
Cash and cash equivalents, beginning of period		385				693				498
Cash and cash equivalents, end of period		$	830			$	385			$	693

⁽¹⁾Eliminated in consolidation

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy

acquisition costs.

See the accompanying Notes to Condensed Financial Statements.

See the accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)

Notes to Condensed Financial Statements

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Aflac Incorporated and Subsidiaries included in Part II, Item 8 of this report.

(A) Notes Payable

A summary of notes payable as of December 31 follows:



(In millions)	2012				2011
8.50% senior notes due May 2019		$	850			$	850
6.45% senior notes dues August 2040		448		⁽¹⁾		448		⁽¹⁾
6.90% senior notes due December 2039		396		⁽²⁾		396		⁽²⁾
3.45% senior notes due August 2015		300				300
2.65% senior notes due February 2017		657		⁽³⁾		0
4.00% senior notes due February 2022		349		⁽⁴⁾		0
5.50% subordinated debentures due September 2052		500				0
Yen-denominated Uridashi notes:
2.26% notes due September 2016 (principal amount 10 billion yen)		116				129
Yen-denominated Samurai notes:
1.47% notes due July 2014 (principal amount 28.7 billion yen)		331				369
1.87% notes paid June 2012 (principal amount 30 billion yen)		0				386
1.84% notes due July 2016 (principal amount 15.8 billion yen)		182				203
Variable interest rate notes due July 2014 (1.34% in 2012 and 2011, principal amount 5.5 billion yen)		64				71
Yen-denominated loans:
3.60% loan due July 2015 (principal amount 10 billion yen)		116				129
3.00% loan due August 2015 (principal amount 5 billion yen)		58				64
Total notes payable		$	4,367			$	3,345

⁽¹⁾$450 issuance net of a $2 underwriting discount that is being amortized over the life of the notes

⁽²⁾$400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes

⁽³⁾$650 issuance plus $7 of an issuance premium that is being amortized over the life of the notes

⁽⁴⁾$350issuance net of a $1 underwriting discount that is being amortized over the life of the notes

During 2009, Aflac Japan bought on the open market 2.0 billion yen of yen-denominated Uridashi notes issued by the Parent Company which are outstanding as of December 31, 2012. In consolidation, those notes have been extinguished; however, they remain an outstanding liability for the Parent Company until their maturity date.

The aggregate contractual maturities of notes payable during each of the years after December 31, 2012, are as follows:



(In millions)
2013	$	0
2014	395
2015	474
2016	298
2017	650
Thereafter	2,550
Total	$	4,367

For further information regarding notes payable, see Note 8 of the Notes to the Consolidated Financial Statements.

(B) Derivatives

At December 31, 2012, the Parent Company's only outstanding freestanding derivative contracts were swaps associated with our notes payable, consisting of an interest rate swap for our variable interest rate yen-denominated debt and cross-currency interest rate swaps associated with our senior notes due in February 2017 and February 2022 and subordinated debentures due in September 2052. We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. For further information regarding these derivatives, see Notes 1, 4 and 8 of the Notes to the Consolidated Financial Statements.

The Parent Company and its eligible U.S. subsidiaries file a consolidated U.S. federal income tax return. Income tax liabilities or benefits are recorded by each principal subsidiary based upon separate return calculations, and any difference between the consolidated provision and the aggregate amounts recorded by the subsidiaries is reflected in the Parent Company financial statements. For further information on income taxes, see Note 9 of the Notes to the Consolidated Financial Statements.

(D) Dividend Restrictions

See Note 12 of the Notes to the Consolidated Financial Statements for information regarding dividend restrictions.

(E) Supplemental Disclosures of Cash Flow Information



(In millions)	2012			2011			2010
Interest paid		$	181		$	163		$	124
Noncash financing activities:
Treasury stock issued for shareholder dividend reinvestment		25			23			0

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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