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BUSINESS SEGMENT AND FOREIGN INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021			2020			2019
Revenues:
Aflac Japan:
Net earned premiums:
Cancer		$	5,829		$	6,119		$	6,031
Medical and other health		3,400			3,596			3,582
Life insurance		2,624			2,955			3,159
Adjusted net investment income (1),(2)		3,031			2,659			2,496
Other income		41			42			45
Total adjusted revenue Aflac Japan		14,925			15,371			15,313
Aflac U.S.:
Net earned premiums:
Accident/disability		2,524			2,614			2,665
Cancer		1,216			1,275			1,309
Other health		1,542			1,571			1,548
Life insurance		332			298			286
Adjusted net investment income (3)		754			705			720
Other income		121			102			22
Total adjusted revenue Aflac U.S.		6,489			6,565			6,550
Corporate and other (4), (5)		175			384			393
Total adjusted revenues		21,589			22,320			22,256
Net investment gains (losses) (1),(2),(3),(4)		517			(173)			51
Total revenues		$	22,106		$	22,147		$	22,307

(1) Amortized hedge costs of $76, $206 and $257 in 2021, 2020 and 2019, 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 $(33), $9, and $(17) in 2021, 2020, and 2019, 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 $2 and $3 in 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.

(4) Amortized hedge income of $57, $97 and $89 in 2021, 2020 and 2019, 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 $138 in 2021 is included as a reduction to net investment income. Tax credits on these investments of $115 in 2021 has 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


(In millions)	2021			2020			2019
Pretax earnings:
Aflac Japan (1),(2)		$	3,754		$	3,263		$	3,261
Aflac U.S. (3)		1,478			1,268			1,272
Corporate and other (4),(5),(6)		(298)			(115)			(72)
Pretax adjusted earnings (7)		4,934			4,416			4,461
Net investment gains (losses) (1),(2),(3),(4),(5)		462			(229)			(15)
Other income (loss)		(74)			(28)			(1)
Total earnings before income taxes		$	5,322		$	4,159		$	4,445
Income taxes applicable to pretax adjusted earnings		$	915		$	864		$	1,147
Effect of foreign currency translation on after-tax adjusted earnings		(38)			31			15

(5) A gain of $55, $56 and $66 in 2021, 2020 and 2019, 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 $138 in 2021 is included as a reduction to net investment income. Tax credits on these investments of $115 in 2021 has 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 $170, $167 and $135 of interest expense on debt in 2021, 2020 and 2019, respectively.

Reconciliation of Assets from Segment to Consolidated

Assets as of December 31 were as follows:


(In millions)	2021			2020
Assets:
Aflac Japan		$	128,536		$	137,271
Aflac U.S.		23,106			22,864
Corporate and other		5,900			4,951
Total assets		$	157,542		$	165,086

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.


	2021				2020				2019
Statements of Earnings:
Weighted-average yen/dollar exchange rate (1)		109.79				106.86				109.07
Yen percent strengthening (weakening)		(2.7)		%		2.1		%		1.2		%
Exchange effect on pretax adjusted earnings (in millions)		$	(47)			$	38			$	20


	2021				2020
Balance Sheets:
Yen/dollar exchange rate at December 31(1)		115.02				103.50
Yen percent strengthening (weakening)		(10.0)		%		5.9		%
Exchange effect on total assets (in millions)		$	(9,635)			$	7,970
Exchange effect on total liabilities (in millions)		(7,566)				7,870

(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)	2021			2020			2019
Management fees		$	59		$	71		$	75
Allocated expenses		0			0			4
Profit remittances		2,138			1,215			2,070
Total transfers from Aflac Japan		$	2,197		$	1,286		$	2,149

Property, Plant and Equipment

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


(In millions)	2021			2020
Property and equipment:
Land		$	168		$	168
Buildings		491			523
Equipment and furniture		542			566
Total property and equipment		1,201			1,257
Less accumulated depreciation		663			656
Net property and equipment		$	538		$	601