NOTES PAYABLE

A summary of notes payable follows:



(In millions)	September 30, 2014				December 31, 2013
3.45% senior notes due August 2015		$	300			$	300
2.65% senior notes due February 2017		654		⁽¹⁾		655		⁽¹⁾
8.50% senior notes due May 2019		850				850
4.00% senior notes due February 2022		350		⁽²⁾		349		⁽²⁾
3.625% senior notes due June 2023		700				700
6.90% senior notes due December 2039		396		⁽²⁾		396		⁽²⁾
6.45% senior notes due August 2040		448		⁽²⁾		448		⁽²⁾
5.50% subordinated debentures due September 2052		500				500
Yen-denominated Uridashi notes:
2.26% notes due September 2016 (principal amount 8 billion yen)		73				76
Yen-denominated Samurai notes:
1.47% notes paid July 2014 (principal amount 28.7 billion yen)		0				272
1.84% notes due July 2016 (principal amount 15.8 billion yen)		144				150
Variable interest rate notes paid July 2014 (1.30% in 2013, principal amount 5.5 billion yen)		0				52
Yen-denominated loans:
3.60% loan due July 2015 (principal amount 10 billion yen)		91				95
3.00% loan due August 2015 (principal amount 5 billion yen)		46				48
Capitalized lease obligations payable through 2022		6				6
Total notes payable		$	4,558			$	4,897

⁽¹⁾Principal amount plus an issuance premium that is being amortized over the life of the notes

⁽²⁾Principal amount net of an issuance discount that is being amortized over the life of the notes

The Parent Company and Aflac have a senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings in the amount of 50 billion yen. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings will bear interest at LIBOR plus the applicable margin of 1.125%. In addition, the Parent Company and Aflac are required to pay a facility fee of .125% on the commitments. As of September 30, 2014, we did not have any borrowings outstanding under our 50 billion yen revolving credit agreement. Borrowings under the credit agreement may be used for general corporate purposes, including a capital contingency plan for our Japanese operations. Borrowings under the financing agreement mature at the termination date of the credit agreement. The agreement requires compliance with certain financial covenants on a quarterly basis. This credit agreement will expire on the earlier of (a) March 29, 2018, or (b) the date of termination of the commitments upon an event of default as defined in the agreement.

In July 2014, we redeemed 28.7 billion yen of our fixed rate Samurai notes and 5.5 billion yen of our variable rate

Samurai notes upon their maturity (a total of approximately $335 million using the exchange rate on the date of redemption).

We were in compliance with all of the covenants of our notes payable and line of credit at September 30, 2014. No events of default or defaults occurred during the nine-month period ended September 30, 2014.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2013.