BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2014

Information with respect to our benefit plans' assets and obligations as of December 31 was as follows:



	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2014				2013				2014				2013				2014					2013
Projected benefit obligation:
Benefit obligation, beginning of year		$	270			$	313			$	601			$	613			$	46				$	98
Service cost		15				16				20				22				1					5
Interest cost		9				10				38				23				2					3
Plan amendments		0				0				0				(4		)		0					(51		)
Actuarial (gain) loss		21				(3		)		74				(37		)		(3		)			(7		)
Benefits and expenses paid		(9		)		(8		)		(16		)		(16		)		(2		)			(2		)
Effect of foreign exchange rate changes		(39		)		(58		)		0				0				0					0
Benefit obligation, end of year		267				270				717				601				44					46

Plan assets:
Fair value of plan assets, beginning of year		182				187				313				261				0					0
Actual return on plan assets		12				13				26				39				0					0
Employer contributions		24				26				18				29				2					2
Benefits and expenses paid		(9		)		(8		)		(16		)		(16		)		(2		)			(2		)
Effect of foreign exchange rate changes		(26		)		(36		)		0				0				0					0
Fair value of plan assets, end of year		183				182				341				313				0					0
Funded status of the plans⁽¹⁾		$	(84	)		$	(88	)		$	(376	)		$	(288	)		$	(44	)			$	(46	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss		$	40			$	33			$	167			$	111			$	19				$	25
Prior service (credit) cost		(2		)		(2		)		(4		)		(4		)		(28		)			(45		)
Transition obligation		0				1				0				0				0					0
Total included in accumulated other comprehensive income		$	38			$	32			$	163			$	107			$	(9	)			$	(20	)
Accumulated benefit obligation		$	235			$	239			$	611			$	514			N/A			⁽²⁾		N/A			⁽²⁾

⁽¹⁾ Recognized in other liabilities in the consolidated balance sheets

⁽²⁾Not applicable

Schedule of Assumptions Used



	Pension Benefits																		Other
	Japan									U.S.									Postretirement Benefits
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost	2.25	%		2.25	%		2.25	%		4.75	%		4.25	%		4.75	%		4.75	%		4.25	%		4.75	%
Discount rate - benefit obligations	1.75			2.25			2.25			4.50			4.75			4.25			4.50			4.75			4.25
Expected long-term return on plan assets	2.00			2.00			2.50			7.50			7.50			7.50			N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾
Rate of compensation increase	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	4.00			4.00			4.00			N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾
Health care cost trend rates	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	N/A		⁽¹⁾	5.70		⁽²⁾	6.40		⁽²⁾	5.70		⁽²⁾

⁽¹⁾ Not applicable

⁽²⁾For the years 2014, 2013 and 2012, the health care cost trend rates are expected to trend down to 4.6% in 78 years, 4.6% in

78 years, and 4.7% in 79 years, respectively.

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2014:



(In millions)
One percentage point increase:
Increase in total service and interest costs	$	0
Increase in postretirement benefit obligation	3

One percentage point decrease:
Decrease in total service and interest costs	$	0
Decrease in postretirement benefit obligation	2

Schedule of Net Benefit Costs

Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components:



	Pension Benefits																								Other
		Japan											U.S.												Postretirement Benefits
(In millions)	2014				2013				2012				2014				2013				2012				2014				2013				2012
Service cost		$	15			$	16			$	18			$	20			$	22			$	18			$	1			$	5			$	6
Interest cost		9				10				7				38				23				24				2				3				4
Expected return on plan assets		(4		)		(3		)		(4		)		(20		)		(17		)		(16		)		0				0				0
Amortization of net actuarial loss		1				2				3				11				15				11				3				2				1
Amortization of prior service cost (credit)		0				0				0				0				0				0				(17		)		(4		)		0
Net periodic (benefit) cost		$	21			$	25			$	24			$	49			$	43			$	37			$	(11	)		$	6			$	11

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:



	Pension Benefits																								Other
	Japan												U.S.												Postretirement Benefits
(In millions)	2014				2013				2012				2014				2013				2012				2014				2013				2012
Net actuarial loss (gain)		$	12			$	(14	)		$	(10	)		$	67			$	(59	)		$	45			$	(3	)		$	(7	)		$	5
Amortization of net actuarial loss		(1		)		(2		)		(3		)		(11		)		(15		)		(11		)		(3		)		(2		)		(1		)
Prior service cost (credit)		0				0				0				0				(4		)		(1		)		0				(51		)		2
Amortization of prior service cost		0				0				0				0				0				0				17				4				0
Total		$	11			$	(16	)		$	(13	)		$	56			$	(78	)		$	33			$	11			$	(56	)		$	6

Schedule of Expected Benefit Payments

The following table provides expected benefit payments, which reflect expected future service, as appropriate.



	Pension Benefits						Other
(In millions)	Japan			U.S.			Postretirement Benefits
2015		$	7		$	20		$	2
2016		11			21			2
2017		8			28			3
2018		7			26			3
2019		9			27			4
2020-2024		63			159			22

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2014 were as follows:



	Japan Pension			U.S. Pension
Domestic equities		0	%		40	%
International equities		15			20
Fixed income securities		70			40
Other		15			0
Total		100	%		100	%

Plan Assets

Fair Value, Assets Measured on Recurring Basis

The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy, except cash and cash equivalents which are classified as Level 1.



(In millions)	2014			2013
Japan pension plan assets:
International equity securities		$	34		$	34
Fixed income securities:
Japanese bonds		72			60
International bonds		44			43
Mutual funds		0			21
Insurance contracts		22			24
Cash and cash equivalents		11			0
Total		$	183		$	182

The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.



(In millions)	2014			2013
U.S. pension plan assets:
Mutual funds:
Large cap equity funds		$	116		$	110
Mid cap equity funds		14			19
Real estate equity funds		10			9
International equity funds		61			68
Fixed income bond funds		136			103
Aflac Incorporated common stock		4			4
Total		$	341		$	313