DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

12 Months Ended

Dec. 31, 2015

Deferred Policy Acquisition Costs Disclosures [Abstract]

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.3 billion in 2015 and 2014, compared with $1.4 billion in 2013. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.



	2015								2014
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	5,211			$	3,062			$	5,819			$	2,979
Capitalization		738				578				790				548
Amortization		(578		)		(488		)		(649		)		(459		)
Foreign currency translation and other		(1		)		(11		)		(749		)		(6		)
Balance, end of year		$	5,370			$	3,141			$	5,211			$	3,062

Commissions deferred as a percentage of total acquisition costs deferred were 74% in 2015, compared with 77% in 2014 and 81% in 2013.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 52% in 2015 and 2014, compared with 51% in 2013. 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)	2015			2014			2013
Advertising expense:
Aflac Japan		$	82		$	103		$	112
Aflac U.S.		129			126			128
Total advertising expense		$	211		$	229		$	240

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)	2015			2014			2013
Depreciation expense		$	44		$	47		$	56
Other amortization expense		6			8			13
Total depreciation and other amortization expense		$	50		$	55		$	69

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)	2015			2014			2013
Lease and rental expense:
Aflac Japan		$	46		$	52		$	55
Aflac U.S.		18			15			10
Other		1			1			1
Total lease and rental expense		$	65		$	68		$	66