BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities not included in Aflac Japan or Aflac U.S. are included in the "Other business segments" category.

We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings includes interest cash flows associated with notes payable and excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities), nonrecurring items and other non-operating income (loss). We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended March 31,
(In millions)	2014				2013
Revenues:
Aflac Japan:
Net earned premiums	$	3,560			$	3,905
Net investment income	663				674
Other income	8				26
Total Aflac Japan	4,231				4,605
Aflac U.S.:
Earned premiums	1,294				1,280
Net investment income	161				157
Other income	0				1
Total Aflac U.S.	1,455				1,438
Other business segments	12				12
Total business segment revenues	5,698				6,055
Realized investment gains (losses)	(56		)	(1)	156
Corporate	78				92
Intercompany eliminations	(71		)		(95		)
Other non-operating income (loss)	(9		)		0
Total revenues	$	5,640			$	6,208

⁽¹⁾ Excluding a gain of $10 for the three-month period ended March 31, 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations

	Three Months Ended March 31,
(In millions)	2014				2013
Pretax earnings:
Aflac Japan	$	933			$	989
Aflac U.S.	303				281
Total business segment pretax operating earnings	1,236				1,270
Interest expense, noninsurance operations	(50		)		(48		)
Corporate and eliminations	(17		)		(17		)
Pretax operating earnings	1,169				1,205
Realized investment gains (losses)	(56		)	(1)	156
Other non-operating income (loss)	(9		)		0
Total earnings before income taxes	$	1,104			$	1,361
Income taxes applicable to pretax operating earnings	$	395			$	415
Effect of foreign currency translation on operating earnings	(48		)		(71		)

⁽¹⁾ Excluding a gain of $10 for the three-month period ended March 31, 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations

Assets were as follows:

(In millions)	March 31, 2014				December 31, 2013
Assets:
Aflac Japan		$	104,614			$	102,973
Aflac U.S.		16,772				16,112
Other business segments		154				155
Total business segment assets		121,540				119,240
Corporate		20,949				19,909
Intercompany eliminations		(19,197		)		(17,842		)
Total assets		$	123,292			$	121,307