BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2017

Information with respect to the Company's benefit plans' assets and obligations as of December 31 was as follows:



	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2017				2016				2017				2016				2017					2016
Projected benefit obligation:
Benefit obligation, beginning of year		$	329			$	276			$	798			$	735			$	37				$	40
Service cost		20				16				24				23				0					1
Interest cost		6				9				40				29				1					2
Actuarial (gain) loss		(10		)		29				65				29				0					(4		)
Benefits and expenses paid		(14		)		(8		)		(19		)		(18		)		(2		)			(2		)
Effect of foreign exchange rate changes		10				7				0				0				0					0
Benefit obligation, end of year		341				329				908				798				36					37

Plan assets:
Fair value of plan assets, beginning of year		229				198				359				336				0					0
Actual return on plan assets		16				9				61				24				0					0
Employer contributions		32				25				47				17				2					2
Benefits and expenses paid		(14		)		(8		)		(19		)		(18		)		(2		)			(2		)
Effect of foreign exchange rate changes		7				5				0				0				0					0
Fair value of plan assets, end of year		270				229				448				359				0					0
Funded status of the plans⁽¹⁾		$	(71	)		$	(100	)		$	(460	)		$	(439	)		$	(36	)			$	(37	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss		$	44			$	67			$	203			$	189			$	6				$	7
Prior service (credit) cost		(2		)		(2		)		(4		)		(4		)		0					0
Total included in accumulated other comprehensive income		$	42			$	65			$	199			$	185			$	6				$	7
Accumulated benefit obligation		$	307			$	288			$	756			$	670			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
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost	1.25	%		1.75	%		1.75	%		4.25	%		4.50	%		4.50	%		4.25	%		4.50	%		4.50	%
Discount rate - benefit obligations	1.25			1.25			1.75			3.75			4.25			4.50			3.75			4.25			4.50
Expected long-term return on plan assets	2.00			2.00			2.00			6.75			7.00			7.25			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⁾	5.40		⁽²⁾	5.20		⁽²⁾	5.30		⁽²⁾

⁽¹⁾ Not applicable

⁽²⁾For the years 2017, 2016 and 2015, the health care cost trend rates are expected to trend down to 4.5% in 77 years, 4.5% in 74 years, and 4.5% 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, 2017:



(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 are included in acquisition and operating expenses in the consolidated statements of earnings, which includes $35 million, $17 million and $(5) million of other components of net periodic pension cost and postretirement costs (other than services costs) for the years ended December 31, 2017, 2016 and 2015, respectively. Total net periodic benefit cost includes the following components:



	Pension Benefits																								Other
		Japan											U.S.												Postretirement Benefits
(In millions)	2017				2016				2015				2017				2016				2015				2017			2016				2015
Service cost		$	20			$	16			$	15			$	24			$	23			$	23			$	0		$	1			$	1
Interest cost		6				9				1				40				29				18				1			2				2
Expected return on plan assets		(5		)		(4		)		(4		)		(24		)		(23		)		(22		)		0			0				0
Amortization of net actuarial loss		2				1				1				14				13				14				1			1				2
Amortization of prior service cost (credit)		0				0				0				0				0				0				0			(11		)		(17		)
Net periodic (benefit) cost		$	23			$	22			$	13			$	54			$	42			$	33			$	2		$	(7	)		$	(12	)

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)	2017				2016				2015				2017				2016				2015				2017				2016				2015
Net actuarial loss (gain)		$	(21	)		$	26			$	3			$	28			$	27			$	22			$	0			$	(4	)		$	(5	)
Amortization of net actuarial loss		(2		)		(1		)		(1		)		(14		)		(13		)		(14		)		(1		)		(1		)		(2		)
Amortization of prior service cost		0				0				0				0				0				0				0				11				17
Total		$	(23	)		$	25			$	2			$	14			$	14			$	8			$	(1	)		$	6			$	10

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
2018		$	10		$	23		$	2
2019		11			24			3
2020		12			25			3
2021		12			26			3
2022		18			35			3
2023-2027		82			184			17

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2017 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)	2017			2016
Japan pension plan assets:
Equities:
Japanese equity securities		$	37		$	28
International equity securities		50			40
Fixed income securities:
Japanese bonds		91			79
International bonds		62			55
Insurance contracts		30			27
Cash and cash equivalents		0			0
Total		$	270		$	229

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)	2017			2016
U.S. pension plan assets:
Mutual funds:
Large cap equity funds		$	124		$	104
Mid cap equity funds		22			19
Real estate equity funds		13			10
International equity funds		108			85
Fixed income bond funds		175			136
Aflac Incorporated common stock		5			4
Cash and cash equivalents		1			1
Total		$	448		$	359