BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 June 30,							Six Months Ended June 30,
(In millions)	2014				2013			2014				2013
Revenues:
Aflac Japan:
Net earned premiums	$	3,578			$	3,717		$	7,138			$	7,622
Net investment income	680				653			1,343				1,327
Other income	8				12			17				38
Total Aflac Japan	4,266				4,382			8,498				8,987
Aflac U.S.:
Earned premiums	1,311				1,295			2,605				2,575
Net investment income	161				158			322				314
Other income	1				1			1				4
Total Aflac U.S.	1,473				1,454			2,928				2,893
Other business segments	10				14			20				26
Total business segment revenues	5,749				5,850			11,446				11,906
Realized investment gains (losses)	92			(1)	201			36			(1)	357
Corporate	74				66			152				159
Intercompany eliminations	(66		)		(73		)	(136		)		(170		)
Other non-operating income (loss)	(11		)		0			(20		)		0
Total revenues	$	5,838			$	6,044		$	11,478			$	12,252

⁽¹⁾ Excluding a gain of $10 for the three-month period and $20 for the six-month period ended June 30, 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 June 30,							Six Months Ended June 30,
(In millions)	2014				2013			2014				2013
Pretax earnings:
Aflac Japan	$	927			$	940		$	1,860			$	1,929
Aflac U.S.	300				283			603				564
Total business segment pretax operating earnings	1,227				1,223			2,463				2,493
Interest expense, noninsurance operations	(51		)		(48		)	(101		)		(97		)
Corporate and eliminations	(19		)		(18		)	(36		)		(34		)
Pretax operating earnings	1,157				1,157			2,326				2,362
Realized investment gains (losses)	92			(1)	201			36			(1)	357
Other non-operating income (loss)	(11		)		0			(20		)		0
Total earnings before income taxes	$	1,238			$	1,358		$	2,342			$	2,719
Income taxes applicable to pretax operating earnings	$	400			$	398		$	795			$	813
Effect of foreign currency translation on operating earnings	(13		)		(103		)	(61		)		(174		)

⁽¹⁾ Excluding a gain of $10 for the three-month period and $20 for the six-month period ended June 30, 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)	June 30, 2014				December 31, 2013
Assets:
Aflac Japan		$	109,033			$	102,973
Aflac U.S.		16,979				16,112
Other business segments		154				155
Total business segment assets		126,166				119,240
Corporate		22,844				19,909
Intercompany eliminations		(21,139		)		(17,842		)
Total assets		$	127,871			$	121,307