INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows:

(In millions)	Foreign				U.S.				Total
2018:
Current		$	771			$	608			$	1,379
Deferred		93				(409		)		(316		)
Total income tax expense		$	864			$	199			$	1,063
2017:
Current		$	722			$	(91	)		$	631
Deferred		(24		)		(1,193		)		(1,217		)
Total income tax expense		$	698			$	(1,284	)		$	(586	)
2016:
Current		$	650			$	234			$	884
Deferred		136				388				524
Total income tax expense		$	786			$	622			$	1,408

Schedule of Effective Income Tax Rate Reconciliation

The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows:

(In millions)	2018				2017				2016
Income taxes based on U.S. statutory rates		$	836			$	1,406			$	1,424
Foreign rate differential		220				0				0
Write-down of U.S. deferred tax liabilities for tax reform change		0				(1,933		)		0
Utilization of foreign tax credit		(3		)		(27		)		(30		)
Nondeductible expenses		21				10				8
Other, net		(11		)		(42		)		6
Income tax expense		$	1,063			$	(586	)		$	1,408

Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation

Total income tax expense for the years ended December 31 was allocated as follows:

(In millions)	2018				2017				2016
Statements of earnings		$	1,063			$	(586	)		$	1,408
Other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) during period		10				52				70
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period		(787		)		575				962
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings		(12		)		1				18
Unrealized gains (losses) on derivatives during period		0				0				1
Pension liability adjustment during period		(8		)		3				(16		)
Total income tax expense (benefit) related to items of other comprehensive income (loss)		(797		)		631				1,035
Additional paid-in capital (exercise of stock options)		0				0				(10		)
Total income taxes		$	266			$	45			$	2,433

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows:

(In millions)	2018				2017
Deferred income tax liabilities:
Deferred policy acquisition costs		$	3,404			$	3,285
Unrealized gains and other basis differences on investments		1,307				2,882
Premiums receivable		149				104
Policy benefit reserves		3,828				3,557
Total deferred income tax liabilities		8,688				9,828
Deferred income tax assets:
Unfunded retirement benefits		8				8
Other accrued expenses		40				141
Policy and contract claims		775				870
Foreign currency loss on Aflac Japan		38				67
Deferred compensation		163				155
Capital loss carryforwards		5				0
Depreciation		119				114
Anticipatory foreign tax credit		4,040				4,504
Deferred foreign tax credit		591				0
Other		150				57
Total deferred income tax assets before valuation allowance		5,929				5,916
Valuation allowance		(738		)		(657		)
Total deferred income tax assets after valuation allowance		5,191				5,259
Net deferred income tax liability		3,497				4,569
Current income tax liability		523				176
Total income tax liability		$	4,020			$	4,745

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31:

(In millions)	2018		2017
Balance, beginning of year	$	14	$	294
Additions for tax positions of prior years	1		0
Reductions for tax positions of prior years	0		(280		)
Balance, end of year	$	15	$	14