BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016				2015				2016				2015				2016					2015
Projected benefit obligation:
Benefit obligation, beginning of year		$	276			$	267			$	735			$	717			$	40				$	44
Service cost		16				15				23				23				1					1
Interest cost		9				1				29				18				2					2
Actuarial (gain) loss		29				0				29				(6		)		(4		)			(5		)
Benefits and expenses paid		(8		)		(7		)		(18		)		(17		)		(2		)			(2		)
Effect of foreign exchange rate changes		7				0				0				0				0					0
Benefit obligation, end of year		329				276				798				735				37					40

Plan assets:
Fair value of plan assets, beginning of year		198				183				336				341				0					0
Actual return on plan assets		9				1				24				(6		)		0					0
Employer contributions		25				21				17				18				2					2
Benefits and expenses paid		(8		)		(7		)		(18		)		(17		)		(2		)			(2		)
Effect of foreign exchange rate changes		5				0				0				0				0					0
Fair value of plan assets, end of year		229				198				359				336				0					0
Funded status of the plans⁽¹⁾		$	(100	)		$	(78	)		$	(439	)		$	(399	)		$	(37	)			$	(40	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss		$	67			$	42			$	189			$	175			$	7				$	12
Prior service (credit) cost		(2		)		(2		)		(4		)		(4		)		0					(11		)
Total included in accumulated other comprehensive income		$	65			$	40			$	185			$	171			$	7				$	1
Accumulated benefit obligation		$	288			$	244			$	670			$	621			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
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost	1.75	%		1.75	%		2.25	%		4.50	%		4.50	%		4.75	%		4.50	%		4.50	%		4.75	%
Discount rate - benefit obligations	1.25			1.75			1.75			4.25			4.50			4.50			4.25			4.50			4.50
Expected long-term return on plan assets	2.00			2.00			2.00			7.00			7.25			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⁾	5.20		⁽²⁾	5.30		⁽²⁾	5.70		⁽²⁾

⁽¹⁾ Not applicable

⁽²⁾For the years 2016, 2015 and 2014, the health care cost trend rates are expected to trend down to 4.5% in 74 years, 4.5% 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, 2016:



(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)	2016				2015				2014				2016				2015				2014				2016				2015				2014
Service cost		$	16			$	15			$	15			$	23			$	23			$	20			$	1			$	1			$	1
Interest cost		9				1				9				29				18				38				2				2				2
Expected return on plan assets		(4		)		(4		)		(4		)		(23		)		(22		)		(20		)		0				0				0
Amortization of net actuarial loss		1				1				1				13				14				11				1				2				3
Amortization of prior service cost (credit)		0				0				0				0				0				0				(11		)		(17		)		(17		)
Net periodic (benefit) cost		$	22			$	13			$	21			$	42			$	33			$	49			$	(7	)		$	(12	)		$	(11	)

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)	2016				2015				2014				2016				2015				2014				2016				2015				2014
Net actuarial loss (gain)		$	26			$	3			$	12			$	27			$	22			$	67			$	(4	)		$	(5	)		$	(3	)
Amortization of net actuarial loss		(1		)		(1		)		(1		)		(13		)		(14		)		(11		)		(1		)		(2		)		(3		)
Amortization of prior service cost		0				0				0				0				0				0				11				17				17
Total		$	25			$	2			$	11			$	14			$	8			$	56			$	6			$	10			$	11

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
2017		$	13		$	22		$	2
2018		8			23			2
2019		9			24			3
2020		10			25			3
2021		10			27			3
2022-2026		74			180			18

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2016 were as follows:



	Japan Pension			U.S. Pension
Domestic equities		11	%		40	%
International equities		15			20
Fixed income securities		59			40
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)	2016			2015
Japan pension plan assets:
Equities:
Japanese equity securities		$	28		$	22
International equity securities		40			33
Fixed income securities:
Japanese bonds		79			71
International bonds		55			48
Insurance contracts		27			23
Cash and cash equivalents		0			1
Total		$	229		$	198

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)	2016			2015
U.S. pension plan assets:
Mutual funds:
Large cap equity funds		$	104		$	94
Mid cap equity funds		19			16
Real estate equity funds		10			10
International equity funds		85			77
Fixed income bond funds		136			134
Aflac Incorporated common stock		4			4
Cash and cash equivalents		1			1
Total		$	359		$	336