DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition Costs Disclosures [Abstract]

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.4 billion in 2016, compared with $1.3 billion in 2015 and 2014. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.



	2016								2015
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	5,370			$	3,141			$	5,211			$	3,062
Capitalization		864				583				738				578
Amortization		(644		)		(497		)		(578		)		(488		)
Foreign currency translation and other		175				1				(1		)		(11		)
Balance, end of year		$	5,765			$	3,228			$	5,370			$	3,141

Commissions deferred as a percentage of total acquisition costs deferred were 74% in 2016 and 2015, compared with 77% in 2014.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 53% in 2016, compared with 52% in 2015 and 2014. 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)	2016			2015			2014
Advertising expense:
Aflac Japan		$	100		$	82		$	103
Aflac U.S.		124			129			126
Total advertising expense		$	224		$	211		$	229

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)	2016			2015			2014
Depreciation expense		$	48		$	44		$	47
Other amortization expense		6			6			8
Total depreciation and other amortization expense		$	54		$	50		$	55

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)	2016			2015			2014
Lease and rental expense:
Aflac Japan		$	53		$	46		$	52
Aflac U.S.		21			18			15
Other		1			1			1
Total lease and rental expense		$	75		$	65		$	68