DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

12 Months Ended

Dec. 31, 2018

Deferred Policy Acquisition Costs Disclosures [Abstract]

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.5 billion in 2018, compared with $1.5 billion in 2017 and $1.4 billion in 2016. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.



	2018								2017
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	6,150			$	3,355			$	5,765			$	3,228
Capitalization		833				669				839				629
Amortization		(710		)		(534		)		(630		)		(502		)
Foreign currency translation and other		111				1				176				0
Balance, end of year		$	6,384			$	3,491			$	6,150			$	3,355

Commissions deferred as a percentage of total acquisition costs deferred were 72% in 2018, compared with 72% in 2017 and 74% in 2016.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 54% in 2018, compared with 56% in 2017 and 53% in 2016. 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)	2018			2017			2016
Advertising expense:
Aflac Japan		$	108		$	100		$	100
Aflac U.S.		110			110			124
Total advertising expense		$	218		$	210		$	224

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)	2018			2017			2016
Depreciation expense		$	48		$	50		$	48
Other amortization expense		1			3			6
Total depreciation and other amortization expense		$	49		$	53		$	54

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)	2018			2017			2016
Lease and rental expense:
Aflac Japan		$	53		$	52		$	53
Aflac U.S.		16			21			21
Other		4			2			1
Total lease and rental expense		$	73		$	75		$	75