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BUSINESS SEGMENT AND FOREIGN INFORMATION
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT AND FOREIGN INFORMATION
The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. In addition, operating business units that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in Corporate and other.

The Company does not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, the Company evaluates and manages its business segments using a financial performance measure called pretax adjusted earnings. Adjusted earnings are adjusted revenues less benefits and
adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. Information regarding operations by reportable segment and Corporate and other for the years ended December 31 follows:
(In millions)202020192018
Revenues:
Aflac Japan:
   Net earned premiums:
             Cancer$6,119 $6,031 $5,849 
             Medical and other health3,596 3,582 3,516 
             Life insurance2,955 3,159 3,397 
   Adjusted net investment income (1),(2)
2,659 2,496 2,403 
   Other income42 45 41 
               Total adjusted revenue Aflac Japan15,371 15,313 15,206 
Aflac U.S.:
   Net earned premiums:
             Accident/disability2,614 2,665 2,611 
             Cancer1,275 1,309 1,311 
             Other health1,571 1,548 1,508 
             Life insurance298 286 278 
   Adjusted net investment income (3)
705 720 727 
   Other income102 22 8 
           Total adjusted revenue Aflac U.S.6,565 6,550 6,443 
Corporate and other (4)
384 393 339 
           Total adjusted revenues22,320 22,256 21,988 
Net investment gains (losses) (1),(2),(3),(4)
(173)51 (230)
           Total revenues$22,147 $22,307 $21,758 
(1) Amortized hedge costs of $206, $257 and $236 in 2020, 2019 and 2018, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.
(2) Net interest cash flows from derivatives associated with certain investment strategies of $9 and $(17) in 2020 and 2019, respectively, and an immaterial amount in 2018, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.
(3) Net interest cash flows from derivatives associated with certain investment strategies of $3 in 2020 have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.
(4) Amortized hedge income of $97, $89 and $36 in 2020, 2019 and 2018, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.
(In millions)202020192018
Pretax earnings:
Aflac Japan (1),(2)
$3,263 $3,261 $3,208 
Aflac U.S. (3)
1,268 1,272 1,285 
Corporate and other (4),(5)
(115)(72)(139)
    Pretax adjusted earnings (6)
4,416 4,461 4,354 
Net investment gains (losses) (1),(2),(3),(4),(5)
(229)(15)(297)
Other income (loss) (28)

(1)(74)

    Total earnings before income taxes$4,159 $4,445 $3,983 
Income taxes applicable to pretax adjusted earnings$864 $1,147 $1,129 
Effect of foreign currency translation on after-tax
adjusted earnings		31 15 28 
(1) Amortized hedge costs of $206, $257 and $236 in 2020, 2019 and 2018, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.
(2) Net interest cash flows from derivatives associated with certain investment strategies of $9 and $(17) in 2020 and 2019, respectively, and an immaterial amount in 2018, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.
(3) Net interest cash flows from derivatives associated with certain investment strategies of $3 in 2020 have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.
(4) Amortized hedge income of $97, $89 and $36 in 2020, 2019 and 2018, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.
(5) A gain of $56, $66 and $67 in 2020, 2019 and 2018, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable have been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.
(6) Includes $167, $135 and $122 of interest expense on debt in 2020, 2019 and 2018, respectively.

Assets as of December 31 were as follows:
(In millions)20202019
Assets:
Aflac Japan$137,271 $127,523 
Aflac U.S.22,864 20,945 
Corporate and other4,951 4,300 
    Total assets$165,086 $152,768 

Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31. Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year.
202020192018
Statements of Earnings:
Weighted-average yen/dollar exchange rate (1)
106.86 109.07 110.39 
Yen percent strengthening (weakening)2.1 %1.2 %1.6 %
Exchange effect on pretax adjusted earnings (in millions)$38 $20 $38 
20202019
Balance Sheets:
Yen/dollar exchange rate at December 31(1)
103.50 109.56 
Yen percent strengthening (weakening)5.9 %1.3 %
Exchange effect on total assets (in millions)$7,970 $1,225 
Exchange effect on total liabilities (in millions)7,870 1,533 
(1) Rates are based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM)
Transfers of funds from Aflac Japan: Aflac Japan makes payments to the Parent Company for management fees, allocated expenses and remittances of earnings. Prior to the Aflac Japan branch conversion on April 1, 2018, Aflac Japan paid allocated expenses and profit remittances to Aflac U.S. Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan.
(In millions)202020192018
Management fees$71 $75 $136 
Allocated expenses0 4 24 
Profit remittances1,215 2,070 808 
Total transfers from Aflac Japan$1,286 $2,149 $968 

Property and Equipment: The costs of buildings, furniture and equipment are depreciated principally on a straight-line basis over their estimated useful lives (maximum of 50 years for buildings and 20 years for furniture and equipment). Expenditures for maintenance and repairs are expensed as incurred; expenditures for betterments are capitalized and depreciated. Classes of property and equipment as of December 31 were as follows:
(In millions)20202019
Property and equipment:
Land$168 $168 
Buildings523 473 
Equipment and furniture566 549 
Total property and equipment1,257 1,190 
Less accumulated depreciation656 609 
Net property and equipment$601 $581 

Receivables: Receivables consist primarily of monthly insurance premiums due from individual policyholders or their employers for payroll deduction of premiums, net of an allowance for doubtful accounts. At December 31, 2020, $201 million, or 25.2% of total receivables, were related to Aflac Japan's operations, compared with $258 million, or 31.2%, at December 31, 2019.