BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 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 September 30,							Nine Months Ended September 30,
(In millions)	2014				2013			2014				2013
Revenues:
Aflac Japan:
Net earned premiums	$	3,534			$	3,735		$	10,672			$	11,357
Net investment income	676				659			2,019				1,986
Other income	9				8			25				46
Total Aflac Japan	4,219				4,402			12,716				13,389
Aflac U.S.:
Earned premiums	1,306				1,293			3,910				3,868
Net investment income	162				159			484				473
Other income	0				1			2				4
Total Aflac U.S.	1,468				1,453			4,396				4,345
Other business segments	11				11			29				38
Total business segment revenues	5,698				5,866			17,141				17,772
Realized investment gains (losses)	6			(1)	22			42			(1)	379
Corporate	43				71			194				229
Intercompany eliminations	(38		)		(73		)	(170		)		(242		)
Other non-operating income (loss)	27				0			7				0
Total revenues	$	5,736			$	5,886		$	17,214			$	18,138

⁽¹⁾ Excluding a gain of $10 for the three-month period and $30 for the nine-month period ended September 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 September 30,							Nine Months Ended September 30,
(In millions)	2014				2013			2014				2013
Pretax earnings:
Aflac Japan	$	828			$	846		$	2,688			$	2,775
Aflac U.S.	269				269			872				833
Total business segment pretax operating earnings	1,097				1,115			3,560				3,608
Interest expense, noninsurance operations	(49		)		(50		)	(150		)		(147		)
Corporate and eliminations	(7		)		(18		)	(43		)		(52		)
Pretax operating earnings	1,041				1,047			3,367				3,409
Realized investment gains (losses)	6			(1)	22			42			(1)	379
Other non-operating income (loss)	27				0			7				0
Total earnings before income taxes	$	1,074			$	1,069		$	3,416			$	3,788
Income taxes applicable to pretax operating earnings	$	356			$	360		$	1,151			$	1,173
Effect of foreign currency translation on operating earnings	(19		)		(97		)	(80		)		(271		)

⁽¹⁾ Excluding a gain of $10 for the three-month period and $30 for the nine-month period ended September 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)	September 30, 2014				December 31, 2013
Assets:
Aflac Japan		$	107,480			$	102,973
Aflac U.S.		17,308				16,112
Other business segments		141				155
Total business segment assets		124,929				119,240
Corporate		22,918				19,909
Intercompany eliminations		(20,594		)		(17,842		)
Total assets		$	127,253			$	121,307