BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in the "Other business segments" category.

We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings includes interest cash flows associated with notes payable and excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities), nonrecurring items and other non-operating income (loss). We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended March 31,
(In millions)	2016			2015
Revenues:
Aflac Japan:
Net earned premiums	$	3,179		$	3,078
Net investment income	622			613
Other income	8			8
Total Aflac Japan	3,809			3,699
Aflac U.S.:
Net earned premiums	1,367			1,339
Net investment income	174			166
Other income	3			3
Total Aflac U.S.	1,544			1,508
Other business segments	65			26
Total business segment revenues	5,418			5,233
Realized investment gains (losses) (1)	51			(4		)
Corporate	67			97
Intercompany eliminations	(42		)	(82		)
Other non-operating income (loss)	(43		)	(18		)
Total revenues	$	5,451		$	5,226

⁽¹⁾ Excluding a gain of $22 and $17 for the three-month periods ended March 31, 2016, and 2015, respectively, 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

	Three Months Ended March 31,
(In millions)	2016			2015
Pretax earnings:
Aflac Japan	$	838		$	819
Aflac U.S.	332			285
Other business segments	3			1
Total business segment pretax operating earnings	1,173			1,105
Interest expense, noninsurance operations	(29		)	(49		)
Corporate and eliminations	(35		)	(21		)
Pretax operating earnings	1,109			1,035
Realized investment gains (losses) (1)	51			(4		)
Other non-operating income (loss)	(43		)	(18		)
Total earnings before income taxes	$	1,117		$	1,013
Income taxes applicable to pretax operating earnings	$	383		$	357
Effect of foreign currency translation on operating earnings	13			(58		)

⁽¹⁾ Excluding a gain of $22 and $17 for the three-month periods ended March 31, 2016, and 2015, respectively, 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

Assets were as follows:

(In millions)	March 31, 2016				December 31, 2015
Assets:
Aflac Japan		$	107,153			$	97,646
Aflac U.S.		19,413				18,537
Other business segments		216				188
Total business segment assets		126,782				116,371
Corporate		25,627				23,375
Intercompany eliminations		(24,643		)		(21,490		)
Total assets		$	127,766			$	118,256

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.