INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

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
2020:
Current		$	822		$	(28)		$	794
Deferred		(28)			(1,385)			(1,413)
Total income tax expense		$	794		$	(1,413)		$	(619)
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

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)	2020			2019			2018
Income taxes based on U.S. statutory rates		$	873		$	933		$	836
Foreign rate differential		0			229			220
Valuation allowance release		(1,411)			0			0
Other, net		(81)			(21)			7
Income tax expense		$	(619)		$	1,141		$	1,063

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)	2020			2019			2018
Statements of earnings		$	(619)		$	1,141		$	1,063
Other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) during period		(3)			27			10
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) on fixed maturity securities during period		223			1,532			(787)
Reclassification adjustment for (gains) losses on fixed maturity securities included in net earnings		33			5			(12)
Unrealized gains (losses) on derivatives during period		0			(3)			0
Pension liability adjustment during period		(2)			(18)			(8)
Total income tax expense (benefit) related to items of other comprehensive income (loss)		251			1,543			(797)
Total income taxes		$	(368)		$	2,684		$	266

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)	2020			2019
Deferred income tax liabilities:
Deferred policy acquisition costs		$	3,663		$	3,492
Unrealized gains and other basis differences on investments		5,227			4,485
Foreign currency gain on Aflac Japan		70			0
Premiums receivable		112			152
Policy benefit reserves		3,834			3,442
Total deferred income tax liabilities		12,906			11,571
Deferred income tax assets:
Unfunded retirement benefits		9			8
Other accrued expenses		37			36
Policy and contract claims		868			781
Foreign currency loss on Aflac Japan		0			16
Deferred compensation		137			162
Capital loss carryforwards		12			34
Depreciation		202			164
Anticipatory foreign tax credit		5,972			5,487
Deferred foreign tax credit		647			605
Other		326			204
Total deferred income tax assets before valuation allowance		8,210			7,497
Valuation allowance		0			(1,340)
Total deferred income tax assets after valuation allowance		8,210			6,157
Net deferred income tax liability		4,696			5,414
Current income tax (asset) liability		(35)			(44)
Total income tax liability		$	4,661		$	5,370

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)	2020		2019
Balance, beginning of year	$	17	$	15
Additions for tax positions of prior years	2		2
Balance, end of year	$	19	$	17