DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.5 billion in 2017, compared with $1.4 billion in 2016 and $1.3 billion in 2015. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.



	2017								2016
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	5,765			$	3,228			$	5,370			$	3,141
Capitalization		839				629				864				583
Amortization		(630		)		(502		)		(644		)		(497		)
Foreign currency translation and other		176				0				175				1
Balance, end of year		$	6,150			$	3,355			$	5,765			$	3,228

Commissions deferred as a percentage of total acquisition costs deferred were 72% in 2017, compared with 74% in 2016 and 2015.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 56% in 2017, compared with 53% in 2016 and 52% in 2015. 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)	2017			2016			2015
Advertising expense:
Aflac Japan		$	100		$	100		$	82
Aflac U.S.		110			124			129
Total advertising expense		$	210		$	224		$	211

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)	2017			2016			2015
Depreciation expense		$	50		$	48		$	44
Other amortization expense		3			6			6
Total depreciation and other amortization expense		$	53		$	54		$	50

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)	2017			2016			2015
Lease and rental expense:
Aflac Japan		$	52		$	53		$	46
Aflac U.S.		21			21			18
Other		2			1			1
Total lease and rental expense		$	75		$	75		$	65