INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

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
2019:
Current		$	737			$	69			$	806
Deferred		183				152				335
Total income tax expense		$	920			$	221			$	1,141
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	)

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)	2019				2018				2017
Income taxes based on U.S. statutory rates		$	933			$	836			$	1,406
Foreign rate differential		229				220				0
Write-down of U.S. deferred tax liabilities for tax reform change		0				0				(1,933		)
Utilization of foreign tax credit		(6		)		(3		)		(27		)
Nondeductible expenses		10				21				10
Other, net		(25		)		(11		)		(42		)
Income tax expense		$	1,141			$	1,063			$	(586	)

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)	2019				2018				2017
Statements of earnings		$	1,141			$	1,063			$	(586	)
Other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) during period		27				10				52
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period		1,532				(787		)		575
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings		5				(12		)		1
Unrealized gains (losses) on derivatives during period		(3		)		0				0
Pension liability adjustment during period		(18		)		(8		)		3
Total income tax expense (benefit) related to items of other comprehensive income (loss)		1,543				(797		)		631
Total income taxes		$	2,684			$	266			$	45

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)	2019				2018
Deferred income tax liabilities:
Deferred policy acquisition costs		$	3,492			$	3,404
Unrealized gains and other basis differences on investments		4,485				1,307
Premiums receivable		152				149
Policy benefit reserves		3,442				3,828
Total deferred income tax liabilities		11,571				8,688
Deferred income tax assets:
Unfunded retirement benefits		8				8
Other accrued expenses		36				40
Policy and contract claims		781				775
Foreign currency loss on Aflac Japan		16				38
Deferred compensation		162				163
Capital loss carryforwards		34				5
Depreciation		164				119
Anticipatory foreign tax credit		5,487				4,040
Deferred foreign tax credit		605				591
Other		204				150
Total deferred income tax assets before valuation allowance		7,497				5,929
Valuation allowance		(1,340		)		(738		)
Total deferred income tax assets after valuation allowance		6,157				5,191
Net deferred income tax liability		5,414				3,497
Current income tax (asset) liability		(44		)		523
Total income tax liability		$	5,370			$	4,020

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)	2019		2018
Balance, beginning of year	$	15	$	14
Additions for tax positions of prior years	2		1
Balance, end of year	$	17	$	15