DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.3 billion in 2014, compared with $1.4 billion in 2013 and $1.7 billion in 2012. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.



	2014								2013
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	5,819			$	2,979			$	6,801			$	2,857
Capitalization		790				548				893				555
Amortization		(649		)		(459		)		(641		)		(433		)
Foreign currency translation and other		(749		)		(6		)		(1,234		)		0
Balance, end of year		$	5,211			$	3,062			$	5,819			$	2,979

Commissions deferred as a percentage of total acquisition costs deferred were 77% in 2014, compared with 81% in 2013 and 84% in 2012.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 52% in 2014, compared with 51% in 2013 and 2012. Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31:



(In millions)	2014			2013			2012
Advertising expense:
Aflac Japan		$	103		$	112		$	127
Aflac U.S.		126			128			127
Total advertising expense		$	229		$	240		$	254

Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:



(In millions)	2014			2013			2012
Depreciation expense		$	47		$	56		$	60
Other amortization expense		8			13			7
Total depreciation and other amortization expense		$	55		$	69		$	67

Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:



(In millions)	2014			2013			2012
Lease and rental expense:
Aflac Japan		$	52		$	55		$	71
Aflac U.S.		15			10			9
Other		1			1			1
Total lease and rental expense		$	68		$	66		$	81

Advertising, lease and rental expense decreased for Aflac Japan in 2014 and 2013 compared with 2012 due to the weakening of the yen relative to the U.S. dollar.