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BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

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)	2022		2021		2022		2021
Revenues:
Aflac Japan:
Net earned premiums	$	2,241	$	2,934	$	7,384	$	9,045
Adjusted net investment income (1),(2)	663		763		2,066		2,260
Other income	9		10		26		32
Total adjusted revenue Aflac Japan	2,913		3,707		9,476		11,337
Aflac U.S.:
Net earned premiums	1,375		1,393		4,182		4,223
Adjusted net investment income (3)	185		191		563		557
Other income	38		32		120		90
Total adjusted revenue Aflac U.S.	1,598		1,616		4,865		4,870
Corporate and other (4),(5)	73		72		189		205
Total adjusted revenues	4,584		5,395		14,530		16,412
Net investment gains (losses) (1),(2),(3),(4)	236		(158)		962		258
Total revenues	$	4,820	$	5,237	$	15,492	$	16,670

(1) Amortized hedge costs of $28 and $20 for the three-month periods and $84 and $55 for the nine-month periods ended September 30, 2022, and 2021, 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 $(25) and $(7) for the three-month periods and $(37) and $(24) for the nine-month periods ended September 30, 2022, and 2021, 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) and $1 for the three-month periods and $1 and $1 for the nine-month periods ended September 30, 2022, and 2021, 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 $19 and $13 for the three-month periods and $44 and $45 for the nine-month periods ended September 30, 2022, and 2021, 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 $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month periods and $63 and $35 for the nine-month periods ended September 30, 2022, and 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)	2022		2021		2022		2021
Pretax earnings:
Aflac Japan (1),(2)	$	630	$	976	$	2,351	$	2,867
Aflac U.S. (3)	309		358		984		1,217
Corporate and other (4),(5),(6)	(59)		(41)		(179)		(144)
Pretax adjusted earnings (7)	880		1,293		3,156		3,940
Net investment gains (losses) (1),(2),(3),(4),(5)	222		(172)		923		216
Other income (loss)	1		(8)		1		(66)
Total earnings before income taxes	$	1,103	$	1,113	$	4,080	$	4,090
Income taxes applicable to pretax adjusted earnings	$	156	$	262	$	565	$	771
Effect of foreign currency translation on after-tax adjusted earnings	(53)		(14)		(147)		(8)

(4) Amortized hedge income of $19 and $13 for the three-month periods and $44 and $45 for the nine-month periods ended September 30, 2022, and 2021, 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 $13 and $14 for the three-month periods and $38 and $41 for the nine-month periods ended September 30, 2022, and 2021, 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 $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month periods and $63 and $35 for the nine-month periods ended September 30, 2022, and 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 $45 and $40 for the three-month periods and $127 and $130 for the nine-month periods ended September 30, 2022, and 2021, respectively, of interest expense on debt.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:


(In millions)	September 30, 2022			December 31, 2021
Assets:
Aflac Japan		$	101,311		$	128,536
Aflac U.S.		20,212			23,106
Corporate and other		6,577			5,900
Total assets		$	128,100		$	157,542