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BUSINESS SEGMENT AND FOREIGN INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other for the years ended December 31 follows:


(In millions)	2020			2019			2018
Revenues:
Aflac Japan:
Net earned premiums:
Cancer		$	6,119		$	6,031		$	5,849
Medical and other health		3,596			3,582			3,516
Life insurance		2,955			3,159			3,397
Adjusted net investment income (1),(2)		2,659			2,496			2,403
Other income		42			45			41
Total adjusted revenue Aflac Japan		15,371			15,313			15,206
Aflac U.S.:
Net earned premiums:
Accident/disability		2,614			2,665			2,611
Cancer		1,275			1,309			1,311
Other health		1,571			1,548			1,508
Life insurance		298			286			278
Adjusted net investment income (3)		705			720			727
Other income		102			22			8
Total adjusted revenue Aflac U.S.		6,565			6,550			6,443
Corporate and other (4)		384			393			339
Total adjusted revenues		22,320			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.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated


(In millions)	2020			2019			2018
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

(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.

Reconciliation of Assets from Segment to Consolidated

Assets as of December 31 were as follows:


(In millions)	2020			2019
Assets:
Aflac Japan		$	137,271		$	127,523
Aflac U.S.		22,864			20,945
Corporate and other		4,951			4,300
Total assets		$	165,086		$	152,768

Foreign Currency Disclosure

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.


	2020				2019				2018
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


	2020				2019
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)

Schedule of Intercompany Transfers of Funds

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)	2020			2019			2018
Management fees		$	71		$	75		$	136
Allocated expenses		0			4			24
Profit remittances		1,215			2,070			808
Total transfers from Aflac Japan		$	1,286		$	2,149		$	968

Property, Plant and Equipment

Classes of property and equipment as of December 31 were as follows:


(In millions)	2020			2019
Property and equipment:
Land		$	168		$	168
Buildings		523			473
Equipment and furniture		566			549
Total property and equipment		1,257			1,190
Less accumulated depreciation		656			609
Net property and equipment		$	601		$	581