XML 45 R29.htm IDEA: XBRL DOCUMENT v3.3.1.900
BUSINESS SEGMENT AND FOREIGN INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
Information regarding operations by segment for the years ended December 31 follows:
(In millions)
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums:
 
 
 
 
 
 
 
 
 
 
 
             Cancer
 
$
4,933

 
 
 
$
5,596

 
 
 
$
6,123

 
             Medical and other health
 
3,092

 
 
 
3,770

 
 
 
4,282

 
             Life insurance
 
4,021

 
 
 
4,495

 
 
 
4,577

 
   Net investment income
 
2,436

 
 
 
2,662

 
 
 
2,651

 
   Other income
 
31

 
 
 
32

 
 
 
55

 
               Total Aflac Japan
 
14,513

 
 
 
16,555

 
 
 
17,688

 
Aflac U.S.:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums:
 
 
 
 
 
 
 
 
 
 
 
             Accident/disability
 
2,391

 
 
 
2,303

 
 
 
2,284

 
             Cancer
 
1,293

 
 
 
1,279

 
 
 
1,283

 
             Other health
 
1,395

 
 
 
1,371

 
 
 
1,334

 
             Life insurance
 
268

 
 
 
258

 
 
 
252

 
   Net investment income
 
678

 
 
 
645

 
 
 
632

 
   Other income
 
8

 
 
 
3

 
 
 
6

 
               Total Aflac U.S.
 
6,033

 
 
 
5,859

 
 
 
5,791

 
Other business segments
 
225

 
 
 
43

 
 
 
49

 
               Total business segment revenues
 
20,771

 
 
 
22,457

 
 
 
23,528

 
Realized investment gains (losses) (1)
 
55

 
 
 
171

 
 
 
389

 
Corporate
 
282

 
 
 
281

 
 
 
302

 
Intercompany eliminations
 
(201
)
 
 
 
(248
)
 
 
 
(308
)
 
Other non-operating income (loss)
 
(35
)
(2) 
 
 
67

 
 
 
28

 
           Total revenues
 
$
20,872

 
 
 
$
22,728

 
 
 
$
23,939

 

(1) Excluding a gain of $85 in 2015, $44 in 2014 and $10 in 2013 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
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses).
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
(In millions)
2015
 
2014
 
2013
Pretax earnings:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
3,175

 
 
 
$
3,458

 
 
 
$
3,628

 
Aflac U.S.
 
1,101

 
 
 
1,073

 
 
 
1,038

 
Other business segments
 
14

 
 
 
(2
)
 
 
 
(1
)
 
    Total business segment pretax operating earnings
 
4,290

 
 
 
4,529

 
 
 
4,665

 
Interest expense, noninsurance operations
 
(146
)
 
 
 
(198
)
 
 
 
(198
)
 
Corporate and eliminations
 
(71
)
 
 
 
(78
)
 
 
 
(68
)
 
    Pretax operating earnings
 
4,073

 
 
 
4,253

 
 
 
4,399

 
Realized investment gains (losses) (1)
 
55

 
 
 
171

 
 
 
389

 
Other non-operating income (loss)
 
(266
)
(2),(3) 
 
 
67

 
 
 
28

 
    Total earnings before income taxes
 
$
3,862

 
 
 
$
4,491

 
 
 
$
4,816

 
Income taxes applicable to pretax operating earnings
 
$
1,403

 
 
 
$
1,456

 
 
 
$
1,512

 
Effect of foreign currency translation on operating earnings
 
(198
)
 
 
 
(117
)
 
 
 
(357
)
 

(1) Excluding a gain of $85 in 2015, $44 in 2014 and $10 in 2013 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
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses).
(3) Includes expense of $230 for the make-whole payment associated with the early extinguishment of debt

Reconciliation of Assets from Segment to Consolidated
Assets as of December 31 were as follows:
(In millions)
2015
 
2014
 
2013
Assets:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
97,646

 
 
 
$
98,525

 
 
 
$
102,973

 
Aflac U.S.
 
18,537

 
 
 
18,383

 
 
 
16,112

 
Other business segments
 
188

 
 
 
128

 
 
 
155

 
    Total business segment assets
 
116,371

 
 
 
117,036

 
 
 
119,240

 
Corporate
 
23,415

 
 
 
24,636

 
 
 
19,909

 
Intercompany eliminations
 
(21,490
)
 
 
 
(21,905
)
 
 
 
(17,842
)
 
    Total assets
 
$
118,296

 
 
 
$
119,767

 
 
 
$
121,307

 
Foreign Currency Disclosure
Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31. Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year.
 
2015
 
2014
 
2013
Statements of Earnings:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average yen/dollar exchange rate
 
120.99

 
 
 
105.46

 
 
 
97.54

 
Yen percent strengthening (weakening)
 
(12.8
)%
 
 
 
(7.5
)%
 
 
 
(18.2
)%
 
Exchange effect on pretax operating earnings (in millions)
 
$
(288
)
 
 
 
$
(180
)
 
 
 
$
(534
)
 

 
2015
 
2014
Balance Sheets:
 
 
 
 
 
 
 
Yen/dollar exchange rate at December 31
 
120.61

 
 
 
120.55

 
Yen percent strengthening (weakening)
 
(.05
)%
 
 
 
(12.6
)%
 
Exchange effect on total assets (in millions)
 
$
(36
)
 
 
 
$
(10,706
)
 
Exchange effect on total liabilities (in millions)
 
(41
)
 
 
 
(12,025
)
 
Schedule of Intercompany Transfers of Funds
Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan.
(In millions)
2015
 
2014
 
2013
Management fees
 
$
53

 
 
 
$
39

 
 
 
$
37

 
Allocated expenses
 
101

 
 
 
71

 
 
 
74

 
Profit repatriation
 
2,139

 
 
 
1,704

 
 
 
771

 
Total transfers from Aflac Japan
 
$
2,293

 
 
 
$
1,814

 
 
 
$
882

 
Property, Plant and Equipment
Classes of property and equipment as of December 31 were as follows:
(In millions)
2015
 
2014
Property and equipment:
 
 
 
 
 
 
 
Land
 
$
166

 
 
 
$
168

 
Buildings
 
400

 
 
 
393

 
Equipment and furniture
 
329

 
 
 
305

 
Total property and equipment
 
895

 
 
 
866

 
Less accumulated depreciation
 
468

 
 
 
437

 
Net property and equipment
 
$
427

 
 
 
$
429