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SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)
Condensed Statements of Earnings
 Years ended December 31,
(In millions)202120202019
Revenues:
   Management and service fees from subsidiaries(1)
$130 $131 $151 
   Net investment income(93)62 77 
   Interest from subsidiaries(1)
2 3 4 
   Net investment gains (losses)206 399 98 
     Total revenues245 595 330 
Operating expenses:
   Interest expense222 221 200 
   Other operating expenses(2)
300 277 221 
     Total operating expenses522 498 421 
   Earnings before income taxes and equity in earnings of
     subsidiaries		(277)97 (91)
Income tax expense (benefit)(144)(15)(22)
   Earnings before equity in earnings of subsidiaries(133)112 (69)
Equity in earnings of subsidiaries(1)
4,458 4,666 3,373 
     Net earnings$4,325 $4,778 $3,304 
(1)Eliminated in consolidation
(2)Includes expense of $48 in 2021 and $15 in 2020 for the early extinguishment of debt
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Statements of Comprehensive Income (Loss)
  Years ended December 31,
(In millions)202120202019
Net earnings$4,325 $4,778 $3,304 
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period(889)510 252 
Unrealized gains (losses) on fixed maturity securities during period(960)1,220 5,852 
Unrealized gains (losses) on derivatives during period5 (1)(12)
Pension liability adjustment during period148 (7)(85)
Total other comprehensive income (loss) before income taxes(1,696)1,722 6,007 
Income tax expense (benefit) related to items of other comprehensive
   income (loss)		(155)251 1,543 
Other comprehensive income (loss), net of income taxes(1,541)1,471 4,464 
Total comprehensive income (loss)$2,784 $6,249 $7,768 
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Balance Sheets
  December 31,
(In millions, except for share and per-share amounts)20212020
Assets:
Investments and cash:
Fixed maturity securities available for sale, at fair value
  (amortized cost $1,608 in 2021 and $1,782 in 2020)
$1,828 $1,876 
Investments in subsidiaries(1)
35,905 36,217 
Other investments1,413 902 
Cash and cash equivalents2,097 2,126 
Total investments and cash41,243 41,121 
Due from subsidiaries(1)
248 253 
Income taxes receivable0 203 
Other assets640 368 
Total assets$42,131 $41,945 
Liabilities and shareholders' equity:
Liabilities:
Employee benefit plans$336 $340 
Notes payable7,579 7,456 
Other liabilities963 590 
Total liabilities8,878 8,386 
Shareholders' equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000
  shares in 2021 and 2020; issued 1,352,739 shares in 2021 and 1,351,018
  shares in 2020
135 135 
Additional paid-in capital2,529 2,410 
Retained earnings41,381 37,984 
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)(2,013)(1,109)
Unrealized gains (losses) on fixed maturity securities9,602 10,361 
Unrealized gains (losses) on derivatives(30)(34)
Pension liability adjustment(166)(284)
Treasury stock, at average cost(18,185)(15,904)
Total shareholders' equity33,253 33,559 
Total liabilities and shareholders' equity$42,131 $41,945 
(1)Eliminated in consolidation
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Statements of Cash Flows
  Years ended December 31,
(In millions)202120202019
Cash flows from operating activities:
Net earnings$4,325 $4,778 $3,304 
Adjustments to reconcile net earnings to net cash provided from
  operating activities:
              Equity in earnings of subsidiaries(1)
(4,458)(4,666)(3,373)
 Cash dividends received from subsidiaries 2,791 2,060 3,466 
 Other, net408 (331)(203)
Net cash provided (used) by operating activities3,066 1,841 3,194 
Cash flows from investing activities:
Fixed maturity securities sold483 438 340 
Fixed maturity securities purchased(489)(484)(639)
Other investments sold (purchased)(421)(711)(16)
Settlement of derivatives135 4 22 
Additional capitalization of subsidiaries(1)
(161)(291)(214)
Other, net1 2 87 
Net cash provided (used) by investing activities(452)(1,042)(420)
Cash flows from financing activities:
Purchases of treasury stock(2,301)(1,537)(1,627)
Proceeds from borrowings1,153 1,545 347 
Principal payments under debt obligations(700)(350)0 
Dividends paid to shareholders(855)(769)(771)
Treasury stock reissued26 34 49 
Proceeds from exercise of stock options17 12 29 
       Net change in amount due to/from subsidiaries(1)
43 (89)(58)
Other, net(26)(27)(2)
Net cash provided (used) by financing activities(2,643)(1,181)(2,033)
Net change in cash and cash equivalents(29)(382)741 
Cash and cash equivalents, beginning of period2,126 2,508 1,767 
Cash and cash equivalents, end of period$2,097 $2,126 $2,508 
(1)Eliminated in consolidation
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
(A) Notes Payable
A summary of notes payable as of December 31 follows:
(In millions)20212020
3.625% senior notes paid May 2021
$0 $698 
3.625% senior notes due November 2024
748 747 
3.25% senior notes due March 2025
448 448 
1.125% senior sustainability notes due March 2026
397 0 
2.875% senior notes due October 2026
298 298 
3.60% senior notes due April 2030
991 990 
6.90% senior notes due December 2039
221 221 
6.45% senior notes due August 2040
255 254 
4.00% senior notes due October 2046
394 394 
4.750% senior notes due January 2049
541 541 
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥12.4 billion)
107 119 
.932% senior notes due January 2027 (principal amount ¥60.0 billion)
520 578 
.500% senior notes due December 2029 (principal amount ¥12.6 billion)
109 121 
.550% senior notes due March 2030 (principal amount ¥13.3 billion)
115 127 
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)
254 282 
.633% senior notes due April 2031 (principal amount ¥30.0 billion)
259 0 
.843% senior notes due December 2031 (principal amount ¥9.3 billion)
81 90 
.750% senior notes due March 2032 (principal amount ¥20.7 billion)
179 198 
.844% senior notes due April 2033 (principal amount ¥12.0 billion)
104 0 
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)
131 146 
.934% senior notes due December 2034 (principal amount ¥9.8 billion)
85 94 
.830% senior notes due March 2035 (principal amount ¥10.6 billion)
91 101 
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)
86 0 
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)
77 85 
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)
54 61 
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)
86 0 
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)
517 575 
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)
172 0 
Yen-denominated loans:
Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020,
  principal amount ¥5.0 billion)
43 48 
Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020,
  principal amount ¥25.0 billion)
216 240 
Total notes payable$7,579 $7,456 
Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

In April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering
under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance or (ii) on or after the date that is six months prior to the stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of
senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023.

In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

The aggregate contractual maturities of notes payable during each of the years after December 31, 2021, are as follows:
(In millions)
2022$0 
20230 
2024750 
2025558 
2026743 
Thereafter5,586 
Total$7,637 

For further information regarding notes payable, see Note 9 of the Notes to the Consolidated Financial Statements.
(B) Derivatives
At December 31, 2021, the Parent Company's outstanding freestanding derivative contracts were swaps, foreign currency forwards and options. The swaps are associated with its notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with the Parent Company's senior notes due in November 2024 and March 2025. The foreign currency forwards and options are designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. The Parent Company does not use derivative financial instruments for trading purposes, nor does it engage in leveraged derivative transactions. For further information regarding these derivatives, see Notes 1, 4 and 9 of the Notes to the Consolidated Financial Statements.
(C) Income Taxes
The Parent Company and its eligible U.S. subsidiaries file a consolidated U.S. federal income tax return. Income tax liabilities or benefits are recorded by each principal subsidiary based upon separate return calculations, and any difference between the consolidated provision and the aggregate amounts recorded by the subsidiaries is reflected in the
Parent Company financial statements. For further information on income taxes, see Note 10 of the Notes to the Consolidated Financial Statements.
(D) Dividend Restrictions

See Note 13 of the Notes to the Consolidated Financial Statements for information regarding dividend restrictions.
(E) Supplemental Disclosures of Cash Flow Information
(In millions)202120202019
Interest paid$213 $209 $189 
Noncash financing activities:
Treasury stock issued for shareholder dividend reinvestment32 29 30