BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2013

Information with respect to our benefit plans' assets and obligations as of December 31 was as follows:



	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2013				2012				2013				2012				2013					2012
Projected benefit obligation:
Benefit obligation, beginning of year		$	313			$	329			$	613			$	525			$	98				$	83
Service cost		16				18				22				18				5					6
Interest cost		10				7				23				24				3					4
Plan amendments		0				0				(4		)		0				(51		)			2
Actuarial (gain) loss		(3		)		3				(37		)		60				(7		)			5
Benefits and expenses paid		(8		)		(8		)		(16		)		(14		)		(2		)			(2		)
Effect of foreign exchange rate changes		(58		)		(36		)		0				0				0					0
Benefit obligation, end of year		270				313				601				613				46					98

Plan assets:
Fair value of plan assets, beginning of year		187				171				261				224				0					0
Actual return on plan assets		13				17				39				31				0					0
Employer contributions		26				27				29				20				2					2
Benefits and expenses paid		(8		)		(8		)		(16		)		(14		)		(2		)			(2		)
Effect of foreign exchange rate changes		(36		)		(20		)		0				0				0					0
Fair value of plan assets, end of year		182				187				313				261				0					0
Funded status of the plans⁽¹⁾		$	(88	)		$	(126	)		$	(288	)		$	(352	)		$	(46	)			$	(98	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss		$	33			$	57			$	111			$	185			$	25				$	34
Prior service (credit) cost		(2		)		(3		)		(4		)		0				(45		)			2
Transition obligation		1				1				0				0				0					0
Total included in accumulated other comprehensive income		$	32			$	55			$	107			$	185			$	(20	)			$	36
Accumulated benefit obligation		$	239			$	276			$	514			$	516			N/A			⁽²⁾		N/A			⁽²⁾

⁽¹⁾ Recognized in other liabilities in the consolidated balance sheets

⁽²⁾Not applicable

Schedule of Assumptions Used



	Pension Benefits																		Other
	Japan									U.S.									Postretirement Benefits
	2013			2012			2011			2013			2012			2011			2013			2012			2011
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost	2.25	%		2.25	%		2.25	%		4.25	%		4.75	%		5.50	%		4.25	%		4.75	%		5.50	%
Discount rate - benefit obligations	2.25			2.25			2.25			4.75			4.25			4.75			4.75			4.25			4.75
Expected long-term return on plan assets	2.00			2.50			2.50			7.50			7.50			7.50			N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾
Rate of compensation increase	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	4.00			4.00			4.00			N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾
Health care cost trend rates	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	6.40		⁽²⁾	5.70		⁽²⁾	7.30		⁽²⁾

⁽¹⁾ Not applicable

⁽²⁾For the years 2013, 2012 and 2011, the health care cost trend rates are expected to trend down to 4.6% in 78 years, 4.7% in

79 years, and 4.2% in 75 years, respectively.

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2013:



(In millions)
One percentage point increase:
Increase in total service and interest costs	$	0
Increase in postretirement benefit obligation	3

One percentage point decrease:
Decrease in total service and interest costs	$	0
Decrease in postretirement benefit obligation	3

Schedule of Net Benefit Costs

Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components:



	Pension Benefits																								Other
		Japan											U.S.												Postretirement Benefits
(In millions)	2013				2012				2011				2013				2012				2011				2013				2012			2011
Service cost		$	16			$	18			$	17			$	22			$	18			$	14			$	5			$	6		$	4
Interest cost		10				7				12				23				24				28				3				4			3
Expected return on plan assets		(3		)		(4		)		(4		)		(17		)		(16		)		(14		)		0				0			0
Amortization of net actuarial loss		2				3				3				15				11				6				2				1			1
Amortization of prior service cost		0				0				0				0				0				0				(4		)		0			0
Net periodic (benefit) cost		$	25			$	24			$	28			$	43			$	37			$	34			$	6			$	11		$	8

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:



	Pension Benefits																								Other
	Japan												U.S.												Postretirement Benefits
(In millions)	2013				2012				2011				2013				2012				2011				2013				2012				2011
Net actuarial loss (gain)		$	(14	)		$	(10	)		$	5			$	(59	)		$	45			$	57			$	(7	)		$	5			$	10
Amortization of net actuarial loss		(2		)		(3		)		(3		)		(15		)		(11		)		(6		)		(2		)		(1		)		(1		)
Prior service cost (credit)		0				0				0				(4		)		(1		)		0				(51		)		2				0
Amortization of prior service cost		0				0				0				0				0				0				4				0				0
Total		$	(16	)		$	(13	)		$	2			$	(78	)		$	33			$	51			$	(56	)		$	6			$	9

Schedule of Expected Benefit Payments

The following table provides expected benefit payments, which reflect expected future service, as appropriate.



	Pension Benefits						Other
(In millions)	Japan			U.S.			Postretirement Benefits
2014		$	10		$	21		$	2
2015		8			22			2
2016		7			23			3
2017		10			30			3
2018		8			31			4
2019-2023		66			184			22

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2013 were as follows:



	Japan Pension			U.S. Pension
Domestic equities		0	%		43	%
International equities		15			22
Fixed income securities		59			35
Mutual funds		11			0
Other		15			0
Total		100	%		100	%

Plan Assets

Fair Value, Assets Measured on Recurring Basis

The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy.



(In millions)	2013			2012
Japan pension plan assets:
Equities:
Japanese equity securities		$	0		$	15
International equity securities		34			42
Fixed income securities:
Japanese bonds		60			62
International bonds		43			44
Mutual funds		21			0
Insurance contracts		24			24
Total		$	182		$	187

The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.



(In millions)	2013			2012
U.S. pension plan assets:
Mutual funds:
Large cap equity funds		$	110		$	87
Mid cap equity funds		19			16
Real estate equity funds		9			8
International equity funds		68			59
Fixed income bond funds		103			88
Aflac Incorporated common stock		4			3
Total		$	313		$	261