COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

We have two outsourcing agreements with a technology and consulting corporation. The first agreement provides mainframe computer operations, distributed mid-range server computer operations, and related support for Aflac Japan. It has a remaining term of five years and an aggregate remaining cost of 36.0 billion yen ($298 million using the December 31, 2015, exchange rate). The second agreement provides application maintenance and development services for Aflac Japan. It has a remaining term of two years and an aggregate remaining cost of 2.4 billion yen ($20 million using the December 31, 2015, exchange rate).

We have an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for our Japanese operation. The agreement has a remaining term of two years with an aggregate remaining cost of 3.1 billion yen ($26 million using the December 31, 2015, exchange rate).

We have two outsourcing agreements with information technology and data services companies to provide application maintenance and development services for our Japanese operation. The first agreement has a remaining term of one year with an aggregate remaining cost of 637 million yen ($5 million using the December 31, 2015, exchange rate). The second agreement has a remaining term of two years with an aggregate remaining cost of 1.6 billion yen ($13 million using the December 31, 2015, exchange rate).

As of December 31, 2015, we have commitments of $182 million to fund potential future loan originations related to our investment in middle market loans. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria. See Note 3 of the Notes to the Consolidated Financial Statements for more details on this investment program.

We lease office space and equipment under agreements that expire in various years through 2026. Future minimum lease payments due under non-cancelable operating leases at December 31, 2015, were as follows:



(In millions)
2016	$	59
2017	44
2018	31
2019	10
2020	8
Thereafter	20
Total future minimum lease payments	$	172

We are a defendant in various lawsuits considered to be in the normal course of business. Members of our senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages,

bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows.