BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015				2014				2015				2014				2015					2014
Projected benefit obligation:
Benefit obligation, beginning of year		$	267			$	270			$	717			$	601			$	44				$	46
Service cost		15				15				23				20				1					1
Interest cost		1				9				18				38				2					2
Actuarial (gain) loss		0				21				(6		)		74				(5		)			(3		)
Benefits and expenses paid		(7		)		(9		)		(17		)		(16		)		(2		)			(2		)
Effect of foreign exchange rate changes		0				(39		)		0				0				0					0
Benefit obligation, end of year		276				267				735				717				40					44

Plan assets:
Fair value of plan assets, beginning of year		183				182				341				313				0					0
Actual return on plan assets		1				12				(6		)		26				0					0
Employer contributions		21				24				18				18				2					2
Benefits and expenses paid		(7		)		(9		)		(17		)		(16		)		(2		)			(2		)
Effect of foreign exchange rate changes		0				(26		)		0				0				0					0
Fair value of plan assets, end of year		198				183				336				341				0					0
Funded status of the plans⁽¹⁾		$	(78	)		$	(84	)		$	(399	)		$	(376	)		$	(40	)			$	(44	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss		$	42			$	40			$	175			$	167			$	12				$	19
Prior service (credit) cost		(2		)		(2		)		(4		)		(4		)		(11		)			(28		)
Total included in accumulated other comprehensive income		$	40			$	38			$	171			$	163			$	1				$	(9	)
Accumulated benefit obligation		$	244			$	235			$	621			$	611			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
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost	1.75	%		2.25	%		2.25	%		4.50	%		4.75	%		4.25	%		4.50	%		4.75	%		4.25	%
Discount rate - benefit obligations	1.75			1.75			2.25			4.50			4.50			4.75			4.50			4.50			4.75
Expected long-term return on plan assets	2.00			2.00			2.00			7.25			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⁾	5.30		⁽²⁾	5.70		⁽²⁾	6.40		⁽²⁾

⁽¹⁾ Not applicable

⁽²⁾For the years 2015, 2014 and 2013, the health care cost trend rates are expected to trend down to 4.5% in 78 years, 4.6% in 78 years, and 4.6% in 78 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, 2015:



(In millions)
One percentage point increase:
Increase in total service and interest costs	$	0
Increase in postretirement benefit obligation	2

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)	2015				2014				2013				2015				2014				2013				2015				2014				2013
Service cost		$	15			$	15			$	16			$	23			$	20			$	22			$	1			$	1			$	5
Interest cost		1				9				10				18				38				23				2				2				3
Expected return on plan assets		(4		)		(4		)		(3		)		(22		)		(20		)		(17		)		0				0				0
Amortization of net actuarial loss		1				1				2				14				11				15				2				3				2
Amortization of prior service cost (credit)		0				0				0				0				0				0				(17		)		(17		)		(4		)
Net periodic (benefit) cost		$	13			$	21			$	25			$	33			$	49			$	43			$	(12	)		$	(11	)		$	6

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)	2015				2014				2013				2015				2014				2013				2015				2014				2013
Net actuarial loss (gain)		$	3			$	12			$	(14	)		$	22			$	67			$	(59	)		$	(5	)		$	(3	)		$	(7	)
Amortization of net actuarial loss		(1		)		(1		)		(2		)		(14		)		(11		)		(15		)		(2		)		(3		)		(2		)
Prior service cost (credit)		0				0				0				0				0				(4		)		0				0				(51		)
Amortization of prior service cost		0				0				0				0				0				0				17				17				4
Total		$	2			$	11			$	(16	)		$	8			$	56			$	(78	)		$	10			$	11			$	(56	)

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
2016		$	12		$	21		$	2
2017		7			22			3
2018		7			23			3
2019		9			24			3
2020		10			25			4
2021-2025		66			170			19

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2015 were as follows:



	Japan Pension			U.S. Pension
Domestic equities		11	%		43	%
International equities		15			22
Fixed income securities		59			35
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)	2015			2014
Japan pension plan assets:
Equities:
Japanese equity securities		$	22		$	0
International equity securities		33			34
Fixed income securities:
Japanese bonds		71			72
International bonds		48			44
Insurance contracts		23			22
Cash and cash equivalents		1			11
Total		$	198		$	183

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)	2015			2014
U.S. pension plan assets:
Mutual funds:
Large cap equity funds		$	94		$	116
Mid cap equity funds		16			14
Real estate equity funds		10			10
International equity funds		77			61
Fixed income bond funds		134			136
Aflac Incorporated common stock		4			4
Cash and cash equivalents		1			0
Total		$	336		$	341