XML 57 R41.htm IDEA: XBRL DOCUMENT v3.22.0.1
BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2021
Schedule of Net Funded Status
Information with respect to the Company's benefit plans' assets and obligations as of December 31 was as follows:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202021202020212020
Projected benefit obligation:
      Benefit obligation, beginning of year$473 $436 $1,204 $1,058 $42 $39 
      Service cost23 24 28 29 0 
      Interest cost6 32 34 1 
      Actuarial (gain) loss(9)(6)(50)106 (2)
      Benefits and expenses paid(15)(12)(28)(23)(5)(4)
      Effect of foreign exchange
         rate changes
(46)26 0 0 
               Benefit obligation, end of year432 473 1,186 1,204 36 42 
Plan assets:
      Fair value of plan assets,
         beginning of year
416 344 824 644 0 
      Actual return on plan assets14 21 81 96 0 
      Employer contributions44 41 8 107 5 
      Benefits and expenses paid(15)(12)(28)(23)(5)(4)
      Effect of foreign exchange
         rate changes
(44)22 0 0 
               Fair value of plan assets,
                  end of year
415 416 885 824 0 
Funded status of the plans(1)
$(17)$(57)$(301)$(380)$(36)$(42)
Amounts recognized in accumulated other
    comprehensive income:
      Net actuarial (gain) loss$50 $74 $158 $278 $10 $15 
      Prior service (credit) cost0 (1)(2)(2)0 
               Total included in accumulated
                  other comprehensive income
$50 $73 $156 $276 $10 $15 
Accumulated benefit obligation$346 $425 $1,010 $1,017   N/AN/A
(1) Recognized in other liabilities in the consolidated balance sheets
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets
Pension Benefits
JapanU.S.
(In millions)2021202020212020
Accumulated benefit obligation $346 $425 $1,010 $1,017 
Fair value of plan assets415 416 885 824 
Information for Pension Plans with a Projected Benefit Obligation in Excess of Plan Assets
Information for Pension Plans with a Projected Benefit Obligation in Excess of Plan Assets
Pension Benefits
Japan (1)
U.S.(2)
(In millions)2021202020212020
Projected benefit obligation $432 $473 $1,186 $1,204 
Fair value of plan assets415 416 885 824 
(1) The net amount of projected benefit obligation and plan assets for the underfunded (including unfunded) Japan pension plan was $17 and $57 at December 31, 2021 and 2020, respectively, and was classified as liabilities on the statement of financial position.
(2) The net amount of projected benefit obligation and plan assets for the underfunded (including unfunded) U.S. pension plan was $301 and $380 at December 31, 2021 and 2020, respectively, and was classified as liabilities on the statement of financial position.
Schedule of Assumptions Used
Pension BenefitsOther
JapanU.S.Postretirement Benefits
202120202019202120202019202120202019
Weighted-average
  actuarial assumptions:
                    
Discount rate - net periodic benefit cost.75%.75%1.25%2.68%3.25%4.25%2.68%3.25%4.25%
Discount rate - benefit
  obligations
.94.75.752.942.683.25  2.942.683.25  
Expected long-term return
  on plan assets
2.002.002.005.756.006.25N/AN/AN/A
Rate of compensation
  increase
N/AN/AN/A4.004.004.00N/AN/AN/A
Health care cost trend ratesN/AN/AN/AN/AN/AN/A5.80
(2)
6.30
(2)
7.50
(2)
(2) For the years 2021, 2020 and 2019, the health care cost trend rates are expected to trend down to 3.7% in 52 years, 3.7% in 53 years, and 3.8% in 54 years, respectively.
Schedule of Net Benefit Costs Total net periodic benefit cost includes the following components:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202019202120202019202120202019
Service cost$23 $24 $22 $28 $29 $23 $0 $$
Interest cost6 32 34 20 1 
Expected return on plan assets(8)(7)(6)(41)(35)(29)0 
Amortization of net actuarial loss2 30 26 10 3 
Amortization of prior service cost0 (1)0 (2)0 
Net periodic (benefit) cost$23 $25 $27 $49 $52 $24 $4 $$
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202019202120202019202120202019
Net actuarial loss (gain)$(22)$(14)$$(90)$45 $95 $(2)$$
Amortization of net actuarial loss(2)(4)(4)(30)(26)(10)(3)(2)(1)
Amortization of prior
  service cost
1 0 0 
     Total$(23)$(17)$(3)$(120)$21 $85 $(5)$$
Schedule of Expected Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Pension BenefitsOther
(In millions)JapanU.S.Postretirement Benefits
2022$17 $32 $
202314 32 
202416 34 
202517 35 
202617 37 
2027-203188 237 
Schedule of Allocation of Plan Assets Asset allocation targets as of December 31, 2021 were as follows:
Japan PensionU.S. Pension
Domestic equities%40 %
International equities21 20 
Fixed income securities66 40 
Other
     Total100 %100 %
Plan Assets  
Fair Value, Assets Measured on Recurring Basis
The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy.
(In millions)20212020
Japan pension plan assets:
     Equities:
        Japanese equity securities$21 $20 
        International equity securities86 88 
     Fixed income securities:
        Japanese bonds22 23 
        International bonds252 249 
     Insurance contracts34 36 
        Total$415 $416 
The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.
(In millions)20212020
U.S. pension plan assets:
     Mutual funds:
        Large cap equity funds$297 $234 
        Mid cap equity funds25 24 
        Real estate equity funds0 19 
        International equity funds208 136 
        Fixed income bond funds346 237 
     Aflac Incorporated common stock7 
     Cash and cash equivalents2 169 
        Total$885 $824