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BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2021

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other, follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Revenues:
Aflac Japan:
Net earned premiums	$	2,934	$	3,168	$	9,045	$	9,476
Adjusted net investment income (1),(2)	763		663		2,260		1,939
Other income	10		11		32		32
Total adjusted revenue Aflac Japan	3,707		3,842		11,337		11,447
Aflac U.S.:
Net earned premiums	1,393		1,407		4,223		4,348
Adjusted net investment income (3)	191		175		557		523
Other income	32		24		90		78
Total adjusted revenue Aflac U.S.	1,616		1,606		4,870		4,949
Corporate and other (4),(5)	72		87		205		292
Total adjusted revenues	5,395		5,535		16,412		16,688
Net investment gains (losses) (1),(2),(3),(4)	(158)		130		258		(454)
Total revenues	$	5,237	$	5,665	$	16,670	$	16,234

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, 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 $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, 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 $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, 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) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Pretax earnings:
Aflac Japan (1),(2)	$	976	$	747	$	2,867	$	2,442
Aflac U.S. (3)	358		329		1,217		1,082
Corporate and other (4),(5),(6)	(41)		(39)		(144)		(69)
Pretax adjusted earnings (7)	1,293		1,037		3,940		3,455
Net investment gains (losses) (1),(2),(3),(4),(5)	(172)		117		216		(497)
Other income (loss)	(8)		(1)		(66)		(16)
Total earnings before income taxes	$	1,113	$	1,153	$	4,090	$	2,942
Income taxes applicable to pretax adjusted earnings	$	262	$	43	$	771	$	659
Effect of foreign currency translation on after-tax adjusted earnings	(14)		3		(8)		17

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

(5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

(6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

(7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:


(In millions)	September 30, 2021			December 31, 2020
Assets:
Aflac Japan		$	131,651		$	137,271
Aflac U.S.		23,304			22,864
Corporate and other		5,642			4,951
Total assets		$	160,597		$	165,086